Question
A) Nestl operates a chocolate manufacturing plant that produces various chocolate bars. The plant uses a process costing system to allocate costs. During the last
A) Nestlé operates a chocolate manufacturing plant that produces various chocolate bars. The plant uses a process costing system to allocate costs. During the last accounting period, the plant incurred total costs of $2,000,000. It started with 10,000 kilograms of raw materials and completed 9,000 kilograms of chocolate bars. Determine the cost per kilogram of chocolate bars produced, considering the beginning and ending inventory. Discuss how process costing differs from job order costing and its suitability for Nestlé's operations. (15 marks)
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