ACCA · Question 19 · Specialist cost and management accounting techniques

Section B - Case 1: AquaHarvest

AquaHarvest operates a sustainable offshore kelp farm. They use an input/output analysis for their kelp processing plant. In May, 10,000 kg of raw wet kelp was input into the process. The process yielded 2,000 kg of dried kelp product. The remaining weight was lost as water evaporation (which has no cost) and solid organic waste. The solid organic waste amounted to 1,500 kg. The cost of raw wet kelp is $2 per kg.

Under input/output analysis, what is the material cost of the non-product output (solid organic waste)? (Enter your answer as a whole number).