Question

1. 450 kg. of Material A and 570 kg. of Material B are jointly used in the production of 125 units of Product M. The details in respect of A and B are as follows-
· Purchase cost of Material A is Rs. 23000 per Metric Tonne and that of Material B is Rs. 17000 per Metric Tonne
· The transportation cost for Material A is Rs. 4 per kg and that of B is Rs. 3 per kg.
· The transit insurance premium is 1.5% of the purchase cost for Material A and 2.5% for Material B.
· It is found that 10% of material A and 5% of material B are considered normal loss during the transit and storage period.
Required – Compute the direct material consumed per unit of Product M.​

Answer 1

Answer:

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