Question

The manufacturing process has normal loss rate of 5% All losses can be sold for $2...

The manufacturing process has normal loss rate of 5%

All losses can be sold for $2 each

last month, 500 units were input into the process

Total input costs were $5,750

460 good quality units were transferred to next process.

There was no work in progress at end of month.

What is the cost per unit for the process?

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Answer #1
cost per unit $12 answer
total cost-proceeds from sale of scrap/expected output
(5750-(2*25))/475 12
expect output=500x.95 475
normal loss 25
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