2022 - JAMB Accounting Past Questions and Answers - page 5

To calculate the cost of raw materials consumed, we need to consider the raw materials purchased and the changes in raw materials stock during the period.

Raw materials purchased = N15,000
Raw materials stock on July 1, 2001 = N2,250
Raw materials stock on June 30, 2002 = N3,000

Now, calculate the cost of raw materials consumed:

Cost of raw materials consumed = Raw materials purchased + Raw materials on July 1, 2001 - Raw materials on June 30, 2002

Cost of raw materials consumed = N15,000 + N2,250 - N3,000 = N14,250

So, the cost of raw materials consumed is N14,250

To find the credit purchases for the period, you need to calculate the change in the purchase ledger control account balance during the period.

1. Start with the opening balance: N45,600 (credit).
2. Add the payments made to credit suppliers during the period: N437,000 (credit).
3. Subtract the discount received on this account: N18,600 (credit).
4. Add the closing balance: N72,600 (credit).

Now, calculate:

N45,600 (opening balance) + N437,000 (payments made) - N18,600 (discount received) + N72,600 (closing balance) = N536,600

So, the total credit purchases for the period were N536,600.

The authority warrant issued prior to the approval of the appropriate bill at the beginning of the year is known as a provisional general warrant.

A provisional general warrant allows for the expenditure of funds before the approval of the formal budget or appropriate bill. It is a temporary authorization that ensures essential expenses can be covered before the official budget is passed or approved. This helps in facilitating the smooth functioning of government operations, particularly in situations where a delay in budget approval might hinder essential activities.