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A company which produces high class perfumes has a production schedule for April showing that 5000kg of materials were input in to the process. These cost an average of $0.50/kg. Conversion costs amounted to $1500. The normal loss is 20% of materials input which can be sold for $0.20/kg. 3800kgwere actually produced in April.
What is the inventory value of the 3800kg produced?Two things:
Firstly, this is not examinable in Paper F5 (only Paper F2), but you have posted it in the F5 forum.
Secondly, why are you attempting questions for which you do not have the answers to? (Unless you have been set this to do yourself, and we are not here to do homework for you ? )
If you watch our Paper F2 lectures on process costing then you will find out how to get the answer.
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