Optimum no.of units to be produced JPR Limited manufactures three products by using a single machine which has 2,40,000bottleneck hours per month. The details with regard to the three products are as under:ProductsP1P2P3Selling price per unit ()Direct Material cost (?)1701401808090120Direct Labour cost (?)Other Expenses (?)Maximum Demand (units)3025351010520,00015,00025,000Time required per unit (hours)643RequiredBased on the concept of throughput accounting, calculate the optimum number of units to

Throughput accounting is an costing technique where it was used in making decisions with respect to…

JPR Limited manufactures three products by using a single machine which has 2,40,000 bottleneck hours per month. The details with regard to the three products are as under: Products P1 P2 P3 Selling price per unit (7) Direct Material cost ( ) 170 140 180 80 90 120 Direct Labour cost () 30 25 35 Other Expenses (?) Maximum Demand (units) Time required per unit (hours) 10 10 5 20,000 15,000 25,000 6 4 3 Required Based on the concept of throughput accounting, calculate the optimum number of units to

JPR Limited manufactures three products by using a single machine which has 2,40,000 bottleneck hours per month. The details with regard to the three products are as under: Products P1 P2 P3 Selling price per unit (7) Direct Material cost ( ) 170 140 180 80 90 120 Direct Labour cost () 30 25 35 Other Expenses (?) Maximum Demand (units) Time required per unit (hours) 10 10 5 20,000 15,000 25,000 6 4 3 Required Based on the concept of throughput accounting, calculate the optimum number of units to

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Optimum no.of units to be produced

JPR Limited manufactures three products by using a single machine which has 2,40,000
bottleneck hours per month. The details with regard to the three products are as under:
Products
P1
P2
P3
Selling price per unit ()
Direct Material cost (?)
170
140
180
80
90
120
Direct Labour cost (?)
Other Expenses (?)
Maximum Demand (units)
30
25
35
10
10
5
20,000
15,000
25,000
Time required per unit (hours)
6
4
3
Required
Based on the concept of throughput accounting, calculate the optimum number of units to

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