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Kaplan Rev KIT

Zzquad10y ago
Q 168 : How did they find normal loss ? why is it 10/110
John MoffatJohn MoffatTutor10y ago#1
I do not have a Kaplan revision kit - sorry.
Zzquad10y ago#2
ABC manufactures product X in a single process. Normal loss in the process is 10% of output and scrappedu nits is sold for $4/unit. There was no open or clos inventory. Process costs of DM , DL , Pro OH = 184800 Input in the month was 13200 inits What was the cost/unit produced
John MoffatJohn MoffatTutor10y ago#3
For every 100 output the loss is 10. So if they lose 10 and still output 100, then they must have input 110.
Zzquad10y ago#4
If they lose 10 , output is still 100 ? how ?
John MoffatJohn MoffatTutor10y ago#5
Because they must have input 110 !!
Zzquad10y ago#6
is there any other explanation you can give for my better understanding as to how to arrive at normal loss of 1200
John MoffatJohn MoffatTutor10y ago#7
For every 110 that they input, they lose 10 and output 100. So the loss is 10% of the output. So if they input 13,200 then they will lose 10 for every 110, which is 10/110 x 13,200.
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