The following information relates to Kano Plastics Ltd for the year ended 31 December 2023: Opening stock of raw materials ₦18,000; Purchases of raw materials ₦120,000; Closing stock of raw materials ₦22,000. What is the cost of raw materials consumed?

Cost of raw materials consumed = Opening stock + Purchases − Closing stock = ₦18,000 + ₦120,000 − ₦22,000 = ₦116,000. A common error is to add the closing stock instead of subtracting it, which gives ₦138,000, or to subtract opening stock instead of adding it.