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A company manufactures Chemical X in a single process. At the start of a month there was no work-in-progress (WIP). During the month 300 litres of raw material were input into the process and 250 litres of Chemical X were transferred to finished goods inventory. The remaining WIP was 60% complete with respect to conversion costs. There are no losses in the process.
What are the equivalent units of production for conversion costs?Q2) A company manufactures a single product. Unit costs are:
$ per unit
Variable production14.75
Priced production8.10
Variable selling2.40
Fixed selling5.35
400,000 units of the product were manufactured in a period, during which 394,000 units were sold. There was no inventory of the product at the beginning of the period.
Using marginal costing, what is the total value of the finished goods inventory at the end of the period?
Q3) Products X, Y and Z are manufactured in a single joint process. Production costs for a period totalled $71,350. 2,500 kilogrammes (kg) of material were input to the process. 20% of the input weight was scrapped and sold for $4.70 per kg. The sales value of the scrap is credited to the process account. Output of the three joint products totalled 2,000 kg. Joint costs are appropriated on the basis of weight?
What was the worst cost per kg manufactured in the period?
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