Question

X Ltd makes one product, which passes through a single process. Details of the process are as follows: Materials: 5 000 kg at 50c per kg Labour: N$800 Production overheads: 200% of labour Normal losses are 20 per cent of input in the process, and without further processing, any losses can be sold as scrap for 30c per kg. The output for the period was 3 800kg from the process. There was no work in progress at the beginning or end of the period. The inspection point for losses is at the end of the process. What is the value of the output? Select one: a. N$3 724 b. N$4 655 c. N$4 370 d. None of all e. N$4 900

Answer 1