Question $3$

A company manufactures a product, Product A manufactured in Process Y$.$ The

following information is available for a period:

Note $1$

In Process Y the normal amount of waste material is $5\%$ of the weight of raw material

input.

Required for Process Y$,$ calculate the:

$($a$)$ cost per $kg$ of the expected production of Product $A$; and

$(7$ marks$)$

$($b$)$ total cost of finished output of product A$.$

$($Total: $10$ marks$)$A company manufactures a product, Product A manufactured in Process Y$.$ The

following information is available for a period:

Process Y

Raw materials input $$162,180(18,000$ kg$)$

Conversion costs $$94,050$

Waste material $1,000$ kg $($Note $1)$

Output of finished product $17,000$ kg

Note $1$

In Process Y the normal amount of waste material is $5\%$ of the weight of raw material

input.

Required for Process Y$,$ calculate the:

$($a$)$ cost per kg of the expected production of Product A; and

$($b$)$ total cost of finished output of product A$.$