The following data relates to a process; Material input $8000{for 200 units] Conversion costs $8480 There is a normal loss of 3% of input, and all losses are sold as scrap at $16 per unit. The actual loss in this period is 80 units. What is the total value of the finished units?
My calculation : normal loss is 2000* 0.3 =60 units at $16 =$960 since actual loss is 80 units which is 20 more normal loss there is an abnormal loss of 20 units at $320 $8000 + $8480 =16480 $960+$320=1280 total value of finished output :$16480-$1280=$15200