Question 40 Chapter 1 VK Publications Class 12 Part 2

Question 40 Chapter 1 VK Publications Class 12 Part 2 – 2021

Table of Contents

The solution of Question 40 Chapter 1 VK Publications Class 12 Part 2: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

40 Calculate Cost of Material Consumed from the following information:

		Rs.
Opening Inventory :	Material	68,750
	Finished Goods	31,250
Material purchased		2,81,250
Closing Inventory :	Material	56,250
	Finished Goods	18,750

The solution of Question 40 Chapter 1 VK Publications Class 12 Part 2: –

Cost of material consumed =	Opening inventory of material + Purcharse of Material -Closing inventory of materials
	= 68,750 + 2,81,250 – 56,250
	= 2,93,750.

Note: Opening inventory of finished goods Rs. 31,250 and Closing Inventory of finished goods Rs.18,750 will be considered while calculating Inventories (changes in Inventories of finished goods).