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SSC Financial and Cost Accounting P-1 QUESTION #6064
Question 1

From the following data, calculate the value of purchases of raw materials:
Raw material consumed $= \text{Rs. }26{,}500$; Closing stock $= \text{Rs. }4{,}500$; Opening stock $= \text{Rs. }3{,}000$.

  • Rs. 26,500
  • Rs. 25,000
  • Rs. 28,000✔️
  • Rs. 34,000
Correct Answer Explanation

Using the raw material formula:

$\text{Purchases} = \text{Consumption} + \text{Closing Stock} - \text{Opening Stock}$

$= 26{,}500 + 4{,}500 - 3{,}000 = \mathbf{Rs.\ 28{,}000}$

Opening stock plus purchases minus closing stock equals consumption. Rearranging: Purchases $=$ Consumption $+$ Closing Stock $-$ Opening Stock.