CMA Intermediate · Cost Accounting · Batch Costing
Batch R-2 has 200 units. Total batch cost is ₹90,000, and the firm sells at cost plus 25%. If 180 units are sold from this batch, what is the sales value?
Cost per unit is ₹450 and selling price with a 25% markup is ₹562.50. Selling 180 units therefore gives sales of ₹1,01,250. Using the full batch of 200 units would overstate sales at ₹1,12,500.
- A₹1,01,250Correct
- B₹1,12,500
- C₹90,000
- D₹1,26,562
Explanation
Cost per unit = 90,000/200 = 450. Selling price = 450 × 1.25 = 562.50. Sales for 180 units = 180 × 562.50 = ₹1,01,250. Using all 200 units gives ₹1,12,500, which is wrong.
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