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MARK Walvis Caterer Limited purchases raw fish from Ocean Fish Company and processes it further into fish fillets and fish fingers. The process can be

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MARK Walvis Caterer Limited purchases raw fish from Ocean Fish Company and processes it further into fish fillets and fish fingers. The process can be described as follows: The raw fish is purchased from the Ocean Fish Company, after which it is cleaned first. During the cleaning process, the head, tail and scales are removed. It is normal that during the cleaning process a loss of 10% occurs, 80% of the 10% of this loss is in the form of waste that can be sold at a price of N$2 per kilogram. After the fish has been cleaned, it goes to the cutting process, where the fish is removed from the spine and cut into fillets. The fillets are already cut into the correct size. The fillets are then ready to be sold. Three-quarters of the output is in the form of fish fillets. The other quarter of the output of the cutting process, namely the spine and off-cuts are sent to the fish finger department. Here the spine and off-cuts are cooked to remove it from the bone. The cooked fish are then used to manufacture the fish fingers, covering it in bread crumbs. The bones are then sent to a separate process to manufacture fish meal. The fish meal is regarded as a by-product. The bones amount to 5% of the weight received in the fish finger department. During July 2017 Walvis Caterer Limited supplied you with the following production, cost and sales figures: Purchases: 12 000 kg fish at N$12 per kilogram Production cost: Cleaning process: Cutting process: Fish Fingers Fish meal: N$10 020 per month fixed cost and N$2.00 per kg fish cleaned N$2 000 per month fixed cost and N$0.50 per kg fish cut NS6 000 per month fixed cost and N$5.00 per kg fish received NS297 per month fixed cost en N$1.80 per kg bones received Sales: Fish fillets Fish fingers: Fish waste:400 kg at N$2 per kilogram Fish meal: 9000 kg at N$40 per kilogram 2 300 kg at N$35 per kilogram 125 kg at NS6 per kilogram There was no beginning or closing inventory work-in-process on hand and there was 2 000 kg fish fillets worth N$35 200 on hand at the beginning of the month

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