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A company manufactures two products, Product A manufactured in Process Y and Product B manufactured in Process Z. The following information is available for a period:
Process Y
Process Z
Opening work-in-progress
nil
Raw materials input
$162,180 (18,000 kg)
$210,090
Conversion costs
$94,050
$287,760
Waste material
1,000 kg (Note 1)
Nil
Sales value of waste material
$1.60 per kg
Output of finished product
17,000 kg
12,600 units
Closing work-in-progress
1,500 units (Note 2)
Note 1 - In Process Y the normal amount of waste material is 5% of the weight of raw materials input
Note 2 - In Process Z the closing work-in-progress is 100% complete as to raw material and 60% complete as to conversion costs.
Required
(a) For Process Y, calculate the:
(i) cost per kg of the expected production of Product A; and
(ii) total cost of the finished output of Product A.
(b) For Process Z, calculate the equivalent units of production of Product B in respect of the conversion cost
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