Cost and Management AccountingQuestion 5446 of 251
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8. Assuming that all the available 1200 tons of raw material is procured per annum and would be utilized for production, what would be the raw material needed for production of SS 304 in order to maintain the same production mix arrived in Q-7 above?

Options

A3,26,678 kg
B3,27,209 kg
C3,55,085 kg
D3,55,663 kg
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Correct Answer

Option A3,26,678 kg

All Options:

  • A3,26,678 kg
  • B3,27,209 kg
  • C3,55,085 kg
  • D3,55,663 kg

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Detailed Solution & Explanation

Under the budgeted production mix of 1,200 tons of raw material, the raw material required for the production of SS304 is calculated as follows:
Net Material Required for SS304=3,26,678 kg\text{Net Material Required for SS304} = 3,26,678 \text{ kg}
Hence, **Option A** is the correct answer.

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