question archive If 1,000 units are input into a process at a cost of $1,800 and normal loss is 10% of input
Subject:AccountingPrice: Bought3
If 1,000 units are input into a process at a cost of $1,800 and normal loss is 10% of input. What is the average cost per unit?
The following data relates to Process 1.
Materials input
- 1,000 units costing Kshs10,000
Labour costs
- Kshs 8,000
Departmental overheads - Ksh 6,000
Normal loss is 4% of input and is sold as scrap for Ksh 12 per unit.
Required:
Calculate the average cost per unit in Process 1 and complete the process account and the scrap account.