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Cost accoutning

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Cost accoutning

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • January 2, 2023 at 2:44 pm #675304
    Avatarpinkyjovin123
    Participant
    • Topics: 92
    • Replies: 134
    • ☆☆☆

    Hello sir ,

    Please help me with the below question .

    Material input 200 kg at $4 per kg
    Labour input 100 hours at $15/hr
    Dept overhead $1000
    Trfr to finished goods 150kg

    Normal loss is 10% of input .
    Losses are identified when the process is 50% complete.
    There is no opening and closing work in progress .
    What is the total cost of the completed unit ?

    In the above question ,how do we get Actual loss 50 kg ?

    January 2, 2023 at 5:39 pm #675316
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54843
    • ☆☆☆☆☆

    They input 200 Kg, but the transfer out to finished goods is 150 kg.

    Therefore they actually lost 200 – 150 = 50 kg.

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