$2.$Do you think the process costing approach is suitable for unit cost calculation in tomato sauce production? How would you calculate this unit cost? What could be some challenges associated with calculating unit cost of tomato sauce based on process costing? Please provide a brief discussion on the challenges. $3$:$05$ am Fri $15$Mar

Coursework$\_$BE$113\_$SP$2024$

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Example of standard cost card for a large meal kit box, serving a total of $8$ portions of two types of meals

$\backslash$table$[[$Meal$-$kits: $($A$)$ Vegetable and $($B$)$ Chicken$],[,\backslash$table$[[$Number of$],[$portions$]],\backslash$table$[[$Standard cost$/],[$Portion$],[$N$$]],\backslash$table$[[$Standard$],[$cost$/],[$Meal N$$]],\backslash$table$[[$Standard$],[$cost$/],[$Box N$$]]],[$Ingredients:$],[$Ingredients for meal$-$kit $($A$),4,1\mathrm{.}08,4\mathrm{.}32,],[$Ingredients for meal$-$kit $($B$),4,1\mathrm{.}20,4\mathrm{.}80,],[,,,9\mathrm{.}12],[\backslash$table$[[$Number of units$],[$of$],[$each input$]],\backslash$table$[[$Standard cost$/],[$unit of input$],[$N$$]],,],[$Packaging & other:$],[$Recipe cards,$2,0\mathrm{.}20,0\mathrm{.}40,],[$Outer box,$1,0\mathrm{.}30,0\mathrm{.}30,],[$Other packaging,$1,0\mathrm{.}70,0\mathrm{.}70,],[,,,1\mathrm{.}40],[$Direct labour:$],[$Herbs & spices,$0\mathrm{.}02$ labour hours,$15\mathrm{.}00,0\mathrm{.}30,],[$Meal$-$kit bags,$0\mathrm{.}04$ labour hours,$15\mathrm{.}00,0\mathrm{.}60,],[$Box packing,$0\mathrm{.}24$ labour hours,$15\mathrm{.}00,3\mathrm{.}60,],[,,,4\mathrm{.}50],[$Production overheads:$],[$Variable:$],[$Herbs & spices,$\backslash$table$[[0\mathrm{.}05$ machine$],[$hours$]],1\mathrm{.}62,0\mathrm{.}08,],[$Meal$-$kit bags,$\backslash$table$[[0\mathrm{.}10$ machine$],[$hours$]],1\mathrm{.}18,0\mathrm{.}12,],[$Box packing,$0\mathrm{.}24$ labour hours,$0\mathrm{.}86,0\mathrm{.}21,],[,,,0\mathrm{.}41],[$Fixed:$],[$Herbs & spices,$\backslash$table$[[0\mathrm{.}05$ machine$],[$hours$]],6\mathrm{.}49,0\mathrm{.}32,],[$Meal$-$kit bags,$\backslash$table$[[0\mathrm{.}10$ machine$],[$hours$]],4\mathrm{.}72,0\mathrm{.}47,],[$Box packing,$0\mathrm{.}24$ labour hours,$4\mathrm{.}85,1\mathrm{.}16,],[,,,1\mathrm{.}95],[$Total production cost,,,,$17\mathrm{.}38]]$

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$\backslash$table$[[,$Small meal$-$kits,Large meal$-$kits$],[$Selling price,N$$30\mathrm{.}00,$N$$40\mathrm{.}00],[$Total number of portions,$4,8],[$Average price per portion,N$$7\mathrm{.}50,$N$$5\mathrm{.}00]]$