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Costs incurred in a process totalled £205,000 for a period. 30,500 units of finished product were manufactured including 2,500 units which were rejected on inspection and disposed of. The level of rejections in the period was 500 units higher than normal. Rejects are sold for £2·00 per unit.
What was the cost per unit for the process?How to solve this?
There is no point in simply typing out full questions and expecting to be provided with a full answer.
You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.
Everything necessary for the exam is explain in my free lectures on process costing. Have you watched them?
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