TDV Limited makes shower gels. In May, the shower gel production process used 20,000 litres of materials at a cost of £11,760 and incurred £3,822 of conversion costs. Normal losses from the shower gel production process are 2% of input materials and all waste products from the process are disposed of at a cost of 24.5 pence per litre. During May 19,700 litres of shower gel were produced. What is the production cost of the 19,700 litres of shower gel produced in May?

Question

Quizplus · Accepted Answer

The Answer of TDV Limited makes shower gels. In May, the shower gel production process used 20,000 litres of materials at a cost of £11,760 and incurred £3,822 of conversion costs. Normal losses from the shower gel production process are 2% of input materials and all waste products from the process are disposed of at a cost of 24.5 pence per litre. During May 19,700 litres of shower gel were produced. What is the production cost of the 19,700 litres of shower gel produced in May?

TDV Limited Makes Shower Gels