Norman has a factory that operates a production process called finishing. The normal loss of the finishing process is 7%. Scrapped units out of the process sell for £4.50 per unit. Output from the process is transferred to the inventory ready for sale. Relevant information about costs is as follows.   Description   Units Amounts in £   Input materials   20500 70000   Transferred to Finished Inventory 17000   Labour and overheads   35000 Normal Loss 7%       Scrap Unit £4.50                       A). What is the expected number of goods to be transferred to the inventory for sale? Choose one from the following:   A. 20500   B. 17000   C. 19065   D. 17045

Concord Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 7000 and ending work in process equaled 400 units. Concord had no beginning work in process inventory. Conversion costs are applied equally throughout production, and materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 20% complete and total materials costs equaled $16100? $2.44. $2.30. $11.50. $2.18.

Crane Industries has equivalent units of 7000 for materials and for conversion costs. Total manufacturing costs are $111000. Total materials costs are $90000. How much is the conversion cost per unit? $15.86. $3.00. $28.71. $12.86.

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33) What is the cost to produce one unit ? Each unit takes 4 pounds of material and each pound costs $5. Each unit takes 2 hours of direct labor time and workers are paid $20 per hour. Overhead is applied based on machine time. Each unit requires 3 hours of machine time and each hour of costs $4 of which $0.30 is depreciation. General and administrative costs are $900,000 and 100,000 units are produced and sold.

A company is looking to launch a new product line, which requires new facilities to be used and at the moment has two planned products, called ‘Basic’ and ‘Super’. The cost per unit is planned as follows:                                                                                Basic                Super Direct materials                                                  £20                    £24 Direct labour                                                       £14                    £16   While using the absorption costing approach, the company uses machine hours as the basis to charge its production overheads. One unit of Basic will use 3 machine hours while one unit of Super will use 4 machine hours.   The business sells these products at a price that gives a standard profit mark-up of 30% of full cost. For the coming year, the company expects to make and sell 8,000 units of Basic and 6,000 units of Super.   If the company adopts the ABC approach, the details relating to the…