Accounting Multiple Choice Question – 24 January 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A department makes radios.

The production at the end of the month was 1000 units, of which 600 units were completed and 400 units were 50% complete.

production costs for the month

  • materials – £60,000
  • labour – £30,000
  • departmental overheads – £10,000

What is the cost per unit?

Select ONE answer:

  1. £100
  2. £112
  3. £125
  4. £150

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct == > (£60 + £30 + £10) / (600 + 400/2) = £125
  4. Not correct

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