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Cherry Fertilizer Sdn. Bhd. makes organic compost from commodity and agricultural waste. The production process begins by shredding all the collected waste into a compost
Cherry Fertilizer Sdn. Bhd. makes organic compost from commodity and agricultural waste. The production process begins by shredding all the collected waste into a compost mixture. In a series of steps, the compost mixture is converted into finished fertilizers that are then bagged and sold. Cherry Fertilizer incurs conversion costs uniformly throughout the process. Cherry Fertilizer shut down its production plant for a major maintenance during October 2019 and began November 2019 with zero inventory of finished organic compost. Cherry Fertilizer started 645,000 pounds of material into production in early November 2019 and had 95,000 pounds still in process at the end of the month. Cherry Fertilizer estimates the ending work in process inventory to be 20 percent complete with respects to conversion costs. During November 2019, Cherry Fertilizer spent RM1,935,000 on materials and RM1,024,200 on conversion costs. Required: Prepare a production cost report for the month of November 2019
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