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Good afternoon, I have the following question.
The following information is available for a production process for the last period:
Material input 200kg at $5 per kg at $6 per kg.
Labour and overhead input $3500
transfer to finished goods 190 kg
normal loss of input is 15% and has a scrap value of $1 per kg.
There is no opening and no closing work in progress.What is the value of the finished output for his period? I opened the process account and ended up with an abnormal gain. Am I on the right track? Thanks.
Yes, there is an abnormal gain of 20kg.
Have you watched my free lectures on process costing with losses? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
Good afternoon.
Thank you very much so far. No, I haven’t so far but I will watch them. Thanks for letting me know.
Regards,
Chrissy.
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