4. If total warehousing cost for the year amounts to Rs.500,000, and 30% of the warehousing activity is associated with direct materials and rest with finished goods, then how much of the cost would be charged as a product cost: А. В. Rs.350,000 Rs.500,000 Rs.150,000 Rs. 50,000 С. D.
4. If total warehousing cost for the year amounts to Rs.500,000, and 30% of the warehousing activity is associated with direct materials and rest with finished goods, then how much of the cost would be charged as a product cost: А. В. Rs.350,000 Rs.500,000 Rs.150,000 Rs. 50,000 С. D.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kindly provide the correct options for the following three questions
Transcribed Image Text:4. If total warehousing cost for the year amounts to Rs.500,000, and 30% of the warehousing
activity is associated with direct materials and rest with finished goods, then how much of the
cost would be charged as a product cost:
А.
Rs.350,000
Rs.500,000
Rs.150,000
В.
С.
D.
Rs. 50,000
5. Expected annual Usage of materials is 2,000,000 units, and per order quantity is 10,000 units.
The invoice cost of each unit is Rs.500, and the cost to place on purchase order is Rs.80.
Total Cost:
А.
8million
В.
16million
С.
zero
D.
None of the above
6.
Based on the information in (5), the estimated annual order cost is:
Rs.16,000
Rs.100,000
Rs.32,000
А.
В.
С.
D.
Rs.50,000
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