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Commerce · Q239

Costing

Graduate and Post Graduate · Commerce · question 239

Q239

AT Co makes a single product and is preparing its material usage budget for next year Each unit of product requires 2kg of material, and 5,000 units of product are to be produced next year Opening inventory of material is budgeted to be 800 kg and AT co budgets to increase material inventory at the end of next year by 20%. The material usage budget for next year is

A.
8,000 Kg
B.
9,840 kg
C.
10,000 Kg
Answer
D.
10,160 Kg

Answer: Option C

Solution

Answer: Option C
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