ABC Ltd purchased raw materials worth Rs.1 lakh during FY19. It had opening stock of raw materials of Rs.12,000 at the beginning of the year and closed the year with a stock of Rs.8000 worth of raw materials. How much of raw material did ABC Ltd consume in FY19?
Material Consumed = Opening Stock of Raw Material (RM) + RM Purchases – Closing Stock of RM = 12,000+100,000-8000 = Rs.104,000 or Rs.1.04 lakh
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