Compute the amount of raw materials purchased during August if Rs.400,000 of raw materials consumed during the month and the inventories were as follows: Inventories Balance August 1 Balance August 31 Raw Materials 25,000 30,000 Work in Process 13,000 16,000 Finished Goods 25,000 27,000

Compute the amount of raw materials purchased during August if Rs.400,000 of raw materials consumed during the month and the inventories were as follows: Inventories Balance August 1 Balance August 31 Raw Materials 25,000 30,000 Work in Process 13,000 16,000 Finished Goods 25,000 27,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Compute the amount of raw materials purchased during August if Rs.400,000 of raw materials consumed during the month and the inventories were as follows:

Inventories

Balance

August 1

Balance

August 31

Raw Materials

25,000

30,000

Work in Process

13,000

16,000

Finished Goods

25,000

27,000

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