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I would to ask how to find input value for the below question given :
a company uses process costing to value output, during the last month the following information was recorded :
output : 2800 kg value at $7.50/kg
normal loss: 300kg which has scrap value of $3/kg
actual loss:200kg
what was the value of the input?
A$22650 B$21900 C$21600 D$21150
thank youThis simply requires you to do what I explained to you in a previous answer, only backwards.
The value per kg of the finished units is given by (value of input – scrap value of normal loss) / (input kg – normal loss in kg).
You know the answer to the above is $7.50
You know the scrap value of the normal loss (300 x $3).
You know the input kg (2800 + 200)
You know the normal loss is 300kgSo you can now calculate the value of the input.
hi sir ,
my working below :
input 2800+200 = 3000 kg value at $21,150 ( 2700x$7.50=20250+900=21150)
less : normal loss = 300kgx$3 = $900
total : 2700 kg & $20,250$20,250/2700kg=$7.50
the answer should be D.$21,150
thank you
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