A company operates a continuous process into which 3,000 units of material costing $9,000 was input in a period. Conversion costs for this period were $11,970 and losses, which have a scrap value of $1.50, are expected at a rate of 10% of input. There were no opening or closing inventories and output for the period was 2,900 units.What was the output valuation?
A、$20,271
B、$20,520
C、$20,970
D、$22,040
A、$20,271
B、$20,520
C、$20,970
D、$22,040
【参考答案及解析】
$ Material 9,000 Conversion costs 11,970 Less scrap value of normal loss (300 x $1.50) (450) Cost of process 20,520 Expected output = 3,000 - (10% x 3,000) =3,000 - 300 = 2,700 unit Costs per unit = Input costs - scrap value of normal loss / Expected output = $20,520 / 2,700= $7.60 Value of output = 2,900x$7.60=$22,040
$ Material 9,000 Conversion costs 11,970 Less scrap value of normal loss (300 x $1.50) (450) Cost of process 20,520 Expected output = 3,000 - (10% x 3,000) =3,000 - 300 = 2,700 unit Costs per unit = Input costs - scrap value of normal loss / Expected output = $20,520 / 2,700= $7.60 Value of output = 2,900x$7.60=$22,040