Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?
Using production related budgets, units to produce equals budgeted sales + desired ending finished goods inventory + desired equivalent units in ending W-I-P inventory – beginning finished goods inventory – equivalent units in beginning W-I-P inventory. Therefore, in this case, units to produce is equal to 5,00,000 + 1,50,000 + 60,000 – 80,000 – 50,000 = 5,80,000
- Cash purchases is recorded in which of the following specialized journals?
- A. Purchase journal B. Sales journal C. Purchases return journal D. Cash payments journal...
- Which of the following statements is correct about Trial Balance?
- A. The Trial Balance is prepared after preparing the Profit and Loss Account B. The Trial Balance shows only balances of Assets and Liabilities C. The Trial Balance shows only nominal account balances D. The Trial Balance has no statutory importance from the point of view of law...
- The balance of which of the following accounts do not disappear, once they are debited/credited to Trading Account?
- A. Sales B. Purchases C. Inward returns D. Closing stock...
- Which of these items are taken into consideration for preparation of adjusted Cash Book
- A. Mistake in Cash Book B. Mistake in Pass Book C. Cheque issued but not presented for payment D. Cheques deposited but not cleared...
- Which of the following are/is not a fixed asset?
- A. Stock B. Vehicle C. Fixed deposit in bank D. Both A. and C. above...