Neo Pharma processes a product through three distinct stages the product of one process being passed on to the next process and so on to the finished product intact. Details of the cost incurred in each process are given below : Process A Process B Process C $ $ Raw Materials 1,150 1,050 700 Direct Wages The overhead expenses for the period amounted to $ 3,600 and is to be distributed to the processes on the basis of direct wages. There were no stocks in any of the processes either at the beginning or at the close of the period. Assuming the output was 1,000 kilos show the process cost of A, B and C indicating also the cost per kilo of each element of cost and the output in each process. (b) If 10 per cent of the output is lost in storage and giving samples, what should the selling 500 600 700 price per unit be to make a gross profit 335 % on the selling price.

Neo Pharma processes a product through three distinct stages the product of one process being passed on to the next process and so on to the finished product intact. Details of the cost incurred in each process are given below : Process A Process B Process C $ $ Raw Materials 1,150 1,050 700 Direct Wages The overhead expenses for the period amounted to $ 3,600 and is to be distributed to the processes on the basis of direct wages. There were no stocks in any of the processes either at the beginning or at the close of the period. Assuming the output was 1,000 kilos show the process cost of A, B and C indicating also the cost per kilo of each element of cost and the output in each process. (b) If 10 per cent of the output is lost in storage and giving samples, what should the selling 500 600 700 price per unit be to make a gross profit 335 % on the selling price.

Name: Neo Pharma processes a product through three distinct stages theprodu
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Description: Neo Pharma processes a product through three distinct stages theproduct of one process being passed on to the next process and so on to the finished product intact.Details of the cost incurred in each process are given below :Process C$700Process AP

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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