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ADVANCED MANAGEMENT AND COST ACCOUNTING

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › ADVANCED MANAGEMENT AND COST ACCOUNTING

  • This topic has 1 reply, 2 voices, and was last updated 11 months ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 20, 2024 at 2:58 pm #708701
    Magagulathuli
    Participant
    • Topics: 1
    • Replies: 1
    • ☆

    The following data, in physical units, describe a grinding process for January:
    Work in process, beginning 19,000
    Started during current period 50,000
    To account for 169,000
    Spoiled units 12,000
    Good units completed and transferred out 132,000
    Work in process, ending 25,000
    Accounted for 169,000
    Inspection occurs at the 100% completion stage. Normal spoilage is 5% of the good
    units passing inspection.
    Required:
    1. Compute the normal and abnormal spoilage in units.
    (10 marks)
    2. Assume that the equivalent-unit cost of a spoiled unit is $10. Compute the
    amount of potential savings if all spoilage were eliminated, assuming that
    all other costs would be unaffected. Comment on your answer

    July 20, 2024 at 4:02 pm #708702
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    Please do not simply type out a full question and expect to be provided with a full answer. You must have an answer in the same book in which you found the question, so ask about whatever it is you are not clear about and I will explain.

    However, equivalent units have now been removed from the syllabus and so are not examinable. In addition, the question cannot be asked in this form in the Paper MA exam because you cannot be asked to comment on anything.

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