Cost and Management AccountingQuestion 5447 of 251
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9. 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 316 in order to maintain the same production mix arrived in Q-7 above?

Options

A7,50,240 kg
B7,51,460 kg
C8,42,966 kg
D8,44,337 kg
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Correct Answer

Option A7,50,240 kg

All Options:

  • A7,50,240 kg
  • B7,51,460 kg
  • C8,42,966 kg
  • D8,44,337 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 SS316 is calculated as follows:
Net Material Required for SS316=7,50,240 kg\text{Net Material Required for SS316} = 7,50,240 \text{ kg}
Hence, **Option A** is the correct answer.

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