CIMAPRA17-BA2-1 Exam - Topic 3 Question 107 Discussion

LC produces a household detergent in a single process. Information for this process for last month is as follows:

(a) Materials input - 11,000 Litres at 2.00 per litre.

(b) Conversion costs - 23,000

(c) Output during the month - 8,000 litres.

(d) There were 2,000 units of closing work in progress which was complete as to materials and 35% complete as to conversion.

(e) Normal loss for the month was 5% of input and all losses have a scrap value of 50p per litre.

(f) There was no opening work in progress.

The value of closing work in progress at the end of the month is closest to: