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BPP Revision kit question 105

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › BPP Revision kit question 105

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • August 14, 2021 at 12:50 pm #631557
    hunzlaaftab
    Member
    • Topics: 6
    • Replies: 2
    • ☆

    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

    August 14, 2021 at 3:29 pm #631567
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51579
    • ☆☆☆☆☆

    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.

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