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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