A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2019 · Q271 Mark

A company makes three products for which the following details are given. product X product Y product Z $ $ $selling price per unit 40 48 72 direct material per unit 18 24 30 direct labour per unit 10 6 18 The same material is used to make all three products and it costs $2.00 per kilo. There is a shortage of material. In which order should the products be made to achieve maximum profit?

Afirst: X, Y, Z: last

Bfirst: Y, Z, X: last

Cfirst: Z, X, Y: last

Dfirst: Z, Y, X: last

✓ Correct answer

D: first: Z, Y, X: last

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2019 Paper 1 Variant 2, question 27.

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