"Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete.
If 11,750completed units were transferred out, what was the closing inventory in Process B?"
A. Rs 6562.50
B. Rs 12,250.00
C. Rs 14,437.50
D. Rs 25,375.00
Answer: Option C
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Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
Total raw material is 13500, additional metrial is needed to convert raw material to finished goods which cost 1.2 per unit. 11750 units of raw material are converted to finished goods. 13500-11750=1750 units are still in process. We need to calculate cost of units still in process. So 4.5+1.2+2.5 will become the cost perunit of work in process.labour cost of finished goods will not include.
13500-11750=1750
1750*(4.50+1.25+2.50)=14437.50
anyone solve this question? how option c is correct