A company operates a process costing system. The process is expected to lose10% of input and this can be sold for $0.45 per kg.Inputs for the month were:2,500 kg at a total cost of$4,425Direct MaterialDirect Labour5,250 for the periodthere is no opening or closing work-in-progress in the period. Actual output was2,150 kg.What is the valuation of the output?O a.$9,675.00O b. $9,137.50O c. $9,055.50O d. $9,245.00

Name: A company operates a process costing system. The process is expected
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Description: A company operates a process costing system. The process is expected to lose10% of input and this can be sold for $0.45 per kg.Inputs for the month were:2,500 kg at a total cost of$4,425Direct MaterialDirect Labour5,250 for the periodthere is no ope

Process costing enables producers to calculate the cost of production for each item, even when they…

Business

Accounting

A company operates a process costing system. The process is expected to I 10% of input and this can be sold for $0.45 per kg. Inputs for the month were: 2,500 kg at a total cost of Direct Material $4,425 Direct Labour 5,250 for the period there is no opening or closing work-in-progress in the period. Actual output-

A company operates a process costing system. The process is expected to I 10% of input and this can be sold for $0.45 per kg. Inputs for the month were: 2,500 kg at a total cost of Direct Material $4,425 Direct Labour 5,250 for the period there is no opening or closing work-in-progress in the period. Actual output-

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

A company operates a process costing system. The process is expected to lose
10% of input and this can be sold for $0.45 per kg.
Inputs for the month were:
2,500 kg at a total cost of
$4,425
Direct Material
Direct Labour
5,250 for the period
there is no opening or closing work-in-progress in the period. Actual output was
2,150 kg.
What is the valuation of the output?
O a.
$9,675.00
O b. $9,137.50
O c. $9,055.50
O d. $9,245.00

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