We are using the process order concept and we are calculating the costs of each FG seperately and our finished products are different kind of sizes and types.
And the requirement here is that if we want to calculate the average cost of the two FG how we can do this ?
Product 1 is manufactured and the arrived cost is $ 30
Porduct 2 is manufactured and the arrived cost is $ 10
And if we use the ratios of 60 and 40 and we determine the avergae cost of (3060%+1040%)/100= $ 22
And we adjust this $ 22 with Product cost of A and Product B.