Kitty Enterprises manufactures cat food from a single process in Department 1 to produce two main...

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Kitty Enterprises manufactures cat food from a single process in Department 1 to produce two main products Chewy and Munch and a by-product Bites. Chewy is processed further in Department 2, Munch in Department 3 and the by-product Bites n Department 4. After allowing for selling expense of 10% and a profit of 10% on sales, the net value of Bites is credited to the joint process in Department 1. Production volumes for May and the sale prices of each product are shown below. The costs for the period are: $147,600 Department 1 (Joint Process) 11,500 Department 2 (Chewy) 8,300 Department 2 (Munch) 400 Department 4(By-Product Bites) Production for the period is: 15,000 kgs Chewy Munch 25,000 kgs 3,250 kgs Bites The selling prices are: Chewy Munch $9.00 per kg $6.00 per kg Bites $1.50 per kg Closing inventory is : Chewy 750 kgs Munch 3,725 kgs 87.5 kgs Bites There are no opening inventory balances in any of the departments Required: (a) Calculate the unit cost (round to 2 decimal places) of each product using the estimated net realisable value method. (b) Value closing inventory (round to the nearest whole dollar) Kitty Enterprises manufactures cat food from a single process in Department 1 to produce two main products Chewy and Munch and a by-product Bites. Chewy is processed further in Department 2, Munch in Department 3 and the by-product Bites n Department 4. After allowing for selling expense of 10% and a profit of 10% on sales, the net value of Bites is credited to the joint process in Department 1. Production volumes for May and the sale prices of each product are shown below. The costs for the period are: $147,600 Department 1 (Joint Process) 11,500 Department 2 (Chewy) 8,300 Department 2 (Munch) 400 Department 4(By-Product Bites) Production for the period is: 15,000 kgs Chewy Munch 25,000 kgs 3,250 kgs Bites The selling prices are: Chewy Munch $9.00 per kg $6.00 per kg Bites $1.50 per kg Closing inventory is : Chewy 750 kgs Munch 3,725 kgs 87.5 kgs Bites There are no opening inventory balances in any of the departments Required: (a) Calculate the unit cost (round to 2 decimal places) of each product using the estimated net realisable value method. (b) Value closing inventory (round to the nearest whole dollar)

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a Computation of Unit Cost of Products Particulars Chewy Munch Production Kgs A 15000 25000 Costs De... View the full answer