Neo Pharma processes a product through three distinct stages the product of one process being passed on to the next process and so on to the finished product intact. Details of the cost incurred in...

Extracted text: Neo Pharma processes a product through three distinct stages the product of one process being passed on to the next process and so on to the finished product intact. Details of the cost incurred in each process are given below : Process C $ 700 Process A Process B $ $ Raw Materials 1,150 1,050 Direct Wages The overhead expenses for the period amounted to $ 3,600 and is to be distributed to the processes on the basis of direct wages. There were no stocks in any of the processes either at the beginning or at the close of the period. Assuming the output was 1,000 kilos show the process cost of A, B and C indicating also the cost per kilo of each element of cost and the output in each process. (b) If 10 per cent of the output is lost in storage and giving samples, what should the selling 500 600 700 price per unit be to make a gross profit 335 % on the selling price.