• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Finished Inventory

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Finished Inventory

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 4, 2014 at 11:45 pm #207747
    Shanda
    Member
    • Topics: 46
    • Replies: 44
    • ☆☆

    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

    Where did I go wrong?

    November 5, 2014 at 1:03 pm #207813
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    I seems that you have not watched the lecture on process costing, and I suggest that you do!

    We cost out over what we expect to produce.

    Therefore the cost per unit is (8000 + 8480 – 960) / (2000 – 60) = $8 per unit

    The output is 1920 units x $8 = $15,360

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Hsaini on Accounting for Management – ACCA Management Accounting (MA)
  • kennedyavege@2023 on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • mrjonbain on Presentation of Financial Statements (IAS 1) – ACCA Strategic Business Reporting (SBR) lectures
  • Aidos on Presentation of Financial Statements (IAS 1) – ACCA Strategic Business Reporting (SBR) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in