A company produces three types of products A, B, and C, and is considering itsproduction plan for the next month of its operations. The estimated cost and sales dataare provided below.AВ102025Direct material cost per unit (Rs. 5/= per Kg)Direct labour cost per unit (Re.1/= per hour)Selling price per unit (Rs.)42203140Monthly demand in units200500450Using the above information, determine the company's product plan under each of thefollowing situations.(a) The raw materials supply is limited to 2,500 kg in next month.(b) The availability of direct labour hours is limited to 2350 hours in next month.

Question is based on the concept of Cost accounting

A company produces three types of products A, B, and C, and is considering its production plan for the next month of its operations. The estimated cost and sales data are provided below. A B Direct material cost per unit (Rs. 5/= per Kg) 10 20 25 Direct labour cost per unit (Re.1/= per hour) 4 3 2 Selling price per unit (Rs.) 20 31 40 Monthly demand in units 200 500 450 Using the above information, determine the company's product plan under each of the following situations. (a) The raw materials supply is limited to 2,500 kg in next month. (b) The availability of direct labour hours is limited to 2350 hours in next month.

A company produces three types of products A, B, and C, and is considering its production plan for the next month of its operations. The estimated cost and sales data are provided below. A B Direct material cost per unit (Rs. 5/= per Kg) 10 20 25 Direct labour cost per unit (Re.1/= per hour) 4 3 2 Selling price per unit (Rs.) 20 31 40 Monthly demand in units 200 500 450 Using the above information, determine the company's product plan under each of the following situations. (a) The raw materials supply is limited to 2,500 kg in next month. (b) The availability of direct labour hours is limited to 2350 hours in next month.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...

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