Sir,
Test - Question 2,
I got the answer (18000units X 8Kg) = 144000 Kg, why did you add another 3000Kg. Please advise,
Ask the Tutor ACCA MA
ProcEss costing – Work-in-ProgrEss
144,000 kg is the amount needed for production. The question asks how many you will need to purchase. Since they wish to increase the inventory of raw materials by 3000 kg they need to buy 147,000 kg.
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