The cost per unit of the complete units assuming that defective units are sold at Ksh 20 per unit is Rm 93.73.
<h3>What is the cost per unit with defective units?</h3>
The cost per unit with defective units can be computed by subtracting the sales value of the sold defective units from the total production costs, thereby reducing the total production costs, and then dividing the resulting figure by the number of good units.
<h3>Data and Calculations:</h3>
Process 1 Process 2 Total costs
Materials Rm 100,000 150,000 250,000
Labor 50,000 50,000 100,000
Overheads 50,000 20,000 70,000
Total costs 420,000
Input units = 5,000
Output units = 4,480
Defective units = 520 (5,000 - 4,480)
Sales revenue from defective units = Rm 104 (520 x Rm 0.20)
Cost per unit = Rm 93.73 (Rm 420,000 - Rm 104)/4,480
Thus, the cost per unit of the complete units assuming that defective units are sold at Ksh 20 per unit is Rm 93.73.
Learn more about accounting for defective units at brainly.com/question/10035226
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