What is the cost of raw materials consumed?

Use the information below to answer the question.

Stock of material 1/1…………..N10 000
Purchase of raw material………..N160 000
Manufacturing wages…………….N420 000
Royalties……………………..N3 000
Stock of raw materials 31/12…….N14 000

A. N173 000
B. N170 000
C. N160 000
D. N156 000

Correct Answer:

Option D – N156 000