Question

Calculate Cost of Materials Consumed from the following:
Opening Inventory of Materials ₹5,00,000; Purchase of Materials ₹25,00,000; and Closing Inventory of Materials ​₹4,00,000.

Answer 1

Cost of Material Consumed = Opening Inventory of Material + Purchase of Materials - Closing Inventory of Materials

= 500000 + 2500000 - 400000 = 2600000

∴ Cost of Materials Consumed is Rs 2600000