12) A company purchases its raw materials so that closing inventory at the end of any month are sufficient to meet production requirements in the next following month. The raw materials is obtained at a cost of $5 per kilogram, payable in the following month and each unit requires two kilograms of raw materials. The production schedule for the next 3 month are given as: March April May June Production in Units 25,500 22,500 27,500 27,000 How much will be paid to creditors for raw materials in June? a) $51,000 b) $54,000 c) $255,000 d) $270,00
12) A company purchases its raw materials so that closing inventory at the end of any month are sufficient to meet production requirements in the next following month. The raw materials is obtained at a cost of $5 per kilogram, payable in the following month and each unit requires two kilograms of raw materials. The production schedule for the next 3 month are given as: March April May June Production in Units 25,500 22,500 27,500 27,000 How much will be paid to creditors for raw materials in June? a) $51,000 b) $54,000 c) $255,000 d) $270,00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What is the answer for number 12?
Transcribed Image Text:8:20 M
11) Period costs are
a) Directly traceable to products
b) Treated as expenses in the period they
are incurred
c) Included in direct labor
d) Also referred to as manufacturing
overhead costs
12) A company purchases its raw materials so
that closing inventory at the end of any
month are sufficient to meet production
requirements in the next following month.
The raw materials is obtained at a cost of $5
per kilogram, payable in the following
month and each unit requires two kilograms
of raw materials. The production schedule
for the next 3 month are given as:
March
April
May
June
Production
in Units
25,500 22,500
27,500
27,000
How much will be paid to creditors
for raw materials in June?
a) $51,000
b) $54,000
c) $255,000
d) $270,00
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