Question
ABC Ltd purchased raw materials worth Rs.1 lakh during
FY21. It had opening stock of raw materials of Rs.12,000 at the beginning of the year and closed the year with a stock of Rs.8000 worth of raw materials. How much of raw material did ABC Ltd consume in FY21?Solution
Material Consumed = Opening Stock of Raw Material (RM) + RM Purchases – Closing Stock of RM = 12,000+100,000-8000       = Rs.104,000 or Rs.1.04 lakh
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