Cost and Management AccountingQuestion 5448 of 251
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10. Keeping the management purchase policy & production quantity mix in consideration for SS304 & SS316, the maximum number of units of each product that company would produce (in units) respectively by utilizing 1200 tons of raw material:

Options

A59,396 & 93,780
B59,493 & 93,933
C64,561 & 1,05,371
D64,666 & 1,05,542
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Correct Answer

Option A59,396 & 93,780

All Options:

  • A59,396 & 93,780
  • B59,493 & 93,933
  • C64,561 & 1,05,371
  • D64,666 & 1,05,542

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Detailed Solution & Explanation

Based on the raw material availability of 1,200 tons (12,00,000 kg) and the budgeted production mix of SS304 and SS316:
Maximum SS304 produced=59,396 units\text{Maximum SS304 produced} = 59,396 \text{ units}
Maximum SS316 produced=93,780 units\text{Maximum SS316 produced} = 93,780 \text{ units}
This represents the optimal production mix under the material constraint.
Hence, **Option A** is the correct answer.

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