Q 168 :
How did they find normal loss ?
why is it 10/110
Ask the Tutor ACCA MA
Kaplan Rev KIT
I do not have a Kaplan revision kit - sorry.
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
For every 100 output the loss is 10.
So if they lose 10 and still output 100, then they must have input 110.
If they lose 10 , output is still 100 ? how ?
Because they must have input 110 !!
is there any other explanation you can give for my better understanding as to how to arrive at normal loss of 1200
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.
Sign in to reply to this topic.
