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Subject - Accounting:

Cost and Management Accounting

MCQ - 167-169

Question:

BDH produced 30,500 units of Kisty (a product). Each unit of Kisty takes two units of component L. Component L is budgeted to cost $ 12 per unit. Current inventory of L is 4,000 units. BDH wants 6,000 units of L on hand at the end of the next year. How much will the direct materials budget show as the cost of materials to be purchased?

  1. $ 756,000
  2. $ 390,000
  3. $ 684,000
  4. $ 390,000

Correct Answer: B

Explanation:

Proposal Budget=E.Sales+Desire units-actual units*per unit cost
=30500+6000-4000=32500*12=390000

Record Performance

355 MCQ for effective preparation of the test of Cost and Management Accounting of Accounting section.

Read the MCQ statement: BDH produced 30,500 units of Kisty (a product). Each unit of Kisty takes two units of component L. Component L is budgeted to cost $ 12 per unit. Curr .... be purchased? , keenly and apply the method you have learn through the video lessons for Cost and Management Accounting to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 167-169.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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