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Forums › ACCA Forums › ACCA MA Management Accounting Forums › Material costing
Hi,can anyone teach me how to do this question?
3800 litres of a chemical were manufactured in a period.there is a normal loss of 5% of the material input to the manufacturing process.there was an abnormal loss of 3% of the material input in the period?How many litres of material were input during the period?
Kindly reply,
Thank you.
If you want me to reply, then you should ask in the Ask the Tutor Forum (this forum is for students to help each other).
However…have you watched the free lectures for Paper F2, where this is covered in full?
The answer to it is 4130 litres approx
Since the final product is after the normal loss and abnormal loss of 5 and 3 percent respectively. So what it essesntially means is that the final producy is 92 percent of the input so 3800/.92=4130 litres