[prekshagudhka]

A company manufactures Chemical X, in a single process. At the start of the month there was no work in progress. During the month 300 litres of raw material were input into the process at a total cost of $6,000. Conversion costs during the month amounted to $4,500. At the end of the month 250 litres of Chemical X were transferred to finished goods inventory. The remaining work in progress was 100% complete with respect to materials and 50% complete with respect to conversion costs. There were no losses in the process.
If there had been a normal process loss of 10% of input during the month what would the value of this loss have been?

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