The per unit total cost of a company's product is ₹60 including Raw Materials ₹30, Direct Labour ₹7.5 and Overheads of ₹22.5. The company is planning to produce 4,00,000 units in the ensuing year. If the inventory policy
CS Executive · Financial and Strategic Management · PYQS · December 2022
The per unit total cost of a company's product is ₹60 including Raw Materials ₹30, Direct Labour ₹7.5 and Overheads of ₹22.5. The company is planning to produce 4,00,000 units in the ensuing year. If the inventory policy of the company envisages that raw materials stock averages two months consumption, work-in-process investment averages half a month's production and finished goods inventory averages one month consumption, the average investment in inventory of the firm for the ensuing year will be : (A) ₹30,00,000 (B) ₹25,00,000 (C) ₹45,00,000 (D) ₹50,00,000
Answer & Explanation:
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Topics: Financial Management
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