Question: A company operates a process costing system. The process is expected to lose 10% of input and this can be sold for $0.45 per kg.

A company operates a process costing system. The process is expected to lose 10% of input and this can be sold for $0.45 per kg.
Inputs for the month were:
Direct Material 2,500 kg at a total cost of $4,425
Direct Labour 5,250 for the period
there is no opening or closing work-in-progress in the period. Actual output was 2,150 kg.
What is the valuation of the output?

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