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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › BPP Revision kit question 105
Hello sir,
In the working to the answer, how are the figures for the relevant further processing costs calculated?
I had calculated them as (4950*2=9900) for FP1 and (3800*3=11400) for FP2 however the answer has (11000) for FP1 (12000) for FP2.
Many thanks in advance
The question says that the further processing costs are $2 and $3 per kg of input. You have subtracted the losses and used the kgs of output.
It should therefore be 5,500 x $2 for FP1 and 4,000 x $3 for FP2.