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Propaint manufactures paints for use in the automotive sector. The manufacture consists of two processes, Process 1 and Process 2. Process 1 mixes water and
Propaint manufactures paints for use in the automotive sector. The manufacture consists of two processes, Process 1 and Process 2. Process 1 mixes water and some chemicals to produce a white base paint. This base paint is an input to Process 2, which is a highly automated process and involves no direct labour. Process 2 adds various pigments and finishes (e.g. metallic finish) to the base paint. Below are some costs of each process for the last period: Process 1 Materials added Labour cost Other costs Litres output 76,455 68,315 81,084 20,000 Process 2 Materials added Indirect costs 42.659 81,361 You can assume no opening or closing inventory, and that no losses occur in either process. Requirement What is the transferred in cost for Process 2? Enter your answer here 225,854 Requirement Using the data above, what is the cost per equivalent unit (litre) for Process 2? Enter your answer here, to two decimal places
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