ProcEss costing – Work-in-ProgrEss

This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.

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March 13, 2014 at 12:41 pm #162232
maas
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Sir,

Test – Question 2,

I got the answer (18000units X 8Kg) = 144000 Kg, why did you add another 3000Kg. Please advise,
March 13, 2014 at 2:46 pm #162246
John Moffat
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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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