AB Chemicals Limited produces a compound by mixing certain ingredients within two separate processes. For a particular
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AB Chemicals Limited produces a compound by mixing certain ingredients within two separate processes. For a particular week the recorded costs were:
Discarded materials have scrap values of £0.30 per kilogramme from Process 1 and £1.50 per kilogramme from Process 2. Assume that sales of scrap are made for cash during the week.
There was no work-in-progress at either the beginning or end of the week.
Output during the week was 1400 kilogrammes from Process 1 and 4200 kilogrammes from Process 2.
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