Mathematics · Cost Accounting

The monthly budget for process Z shows the following input/output analysis: INPUTS Materials: 1,000 kg ($50,000) System costs (Labour, utilities, etc.): ($30,000) Total: 1,000 kg ($80,000) OUTPUTS Good output: Expected good output is 70% of input and can be sold for $120 per kg (700 kg, $84,000) Waste: Expected waste is 10% of input and must be scrapped at a cost of $10 per kg (100 kg, ($1,000)) Scrap: Expected scrap is 20% of input and can be sold for $15 per kg (200 kg, $3,000) The company is adopting environmental flow cost accounting, in which all material and system costs ($80,000) will be apportioned on the basis of weight. Calculate the total net cost of waste and scrap combined.