Multiple choice

2000 kg of apples are consigned to a wholesaler, the cost being Rs. 3 per kg plus Rs. 400 as freight, it is known that a loss of 15% is unavoidable. The cost per kg will be

  1. Rs. 2.50

  2. Rs. 4

  3. Rs. 1.70

  4. Rs. 1.50
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cost of 2,000 kg apples        =Rs 6,000

  • Freight                                  =Rs 400Total Cost of 2000 kg apples = Rs 6400 Normal lossis to be spread over entire consignment for valuation of inventories Normal Loss                        = 15% of 2000                                                = 300 kgs  therefore, Cost of 1700 kgs = Rs6400 Cost per kg                             =Rs (6400/1700)                                                  =Rs 4

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