alleryStart learning →Raw material costing Rs 400 goes into a product costing Rs 900 that will sell for Rs 1,100. Value of the raw material?
ARs 700
BRs 400
CRs 300
DRs 500
Answer & Solution
Correct answer: B. Rs 400
The finished product will sell above its cost, so the raw material is not written down below its cost of Rs 400.
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