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state your answer clearly at top please of your answering page :) City Engineers Ltd has estimated that the cost of running the finished goods
state your answer clearly at top please of your answering page :)
City Engineers Ltd has estimated that the cost of running the finished goods stores for next year will be 160,000. This will be the amount allocated to the 'finished goods stores cost pool'. It is estimated that each Product 240L will spend an average of two weeks in the stores before being sold. With Product 360X, the equivalent period is five weeks. Both products are of roughly similar size and have very similar storage needs. It is felt, therefore, that the period spent in the stores ('product weeks') is the cost driver. Next year, it is expected that the business will produce 60,000 Product 240L and 40,000 Product 360X. Calculate the cost to be attached to each unit of: 1. Product 240L 2. Product 360X that will pass through the finished goods store. (Round up your answer to the nearest whole number with two decimal places.) 1. Product 240L = 2. Product 360X =Step by Step Solution
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