A company manufactures two products, Product A manufactured in Process Y and Product B manufactured in Process Z. The following information is available for a period:
|
|
Process Y
|
Process Z
|
|
Opening work-in-progress
|
nil
|
nil
|
|
Raw materials input
|
$162,180 (18,000 kg)
|
$210,090
|
|
Conversion costs
|
$94,050
|
$287,760
|
|
Waste material
|
1,000 kg (Note 1)
|
Nil
|
|
Sales value of waste material
|
$1.60 per kg
|
Nil
|
|
Output of finished product
|
17,000 kg
|
12,600 units
|
|
Closing work-in-progress
|
Nil
|
1,500 units (Note 2)
|
Note 1 - In Process Y the normal amount of waste material is 5% of the weight of raw materials input
Note 2 - In Process Z the closing work-in-progress is 100% complete as to raw material and 60% complete as to conversion costs.
Required
(a) For Process Y, calculate the:
(i) cost per kg of the expected production of Product A; and
(ii) total cost of the finished output of Product A.
(b) For Process Z, calculate the equivalent units of production of Product B in respect of the conversion cost