Accounting Multiple Choice Question – 24 January 2023

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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