[pororo]

A company makes a product, which passes through a single process.

Details of the process for the last period are as follows.

Materials 5,000 kg at 50c per kg
Labour $700
Production overheads 200% of labour

Normal losses are 10% of input in the process, and without further processing any losses can be sold as scrap for 20c per kg.

The output for the period was 4,200 kg from the process.

There was no work in progress at the beginning or end of the period.

What will the value credited to the progress account for the scrap value of the normal loss for the period be?

A $84
B $100
C $210
D $250

[pororo]

ok, thank you…

[pororo]

ok, thanks

[pororo]

ok,i think i already understand,thanks for your explain.

[pororo]

Sorry, I still have some don’t understand. In direct, 5 x1.5=7.5, in indirect, 5 x 0.5= 2.5, why is a multiplied by 1.5, one is multiplied by 0.5?

[pororo]

ok

[pororo]

ok, thanks for your help.

[pororo]

how to get 2.5 ?

[pororo]

indirect: 38 x 5 x 100= 1900
6 x 7.5 x 10= 450
direct: 6 x 1.5 x 20= 180
—————
total: 2530

[pororo]

ok, thank you…

[pororo]

absorption costing and marginal costing have any different?

[pororo]

ok, thank you

[Author]

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