Kaplan Rev KIT | Free ACCA & CIMA online courses from OpenTuition

This topic has 7 replies, 2 voices, and was last updated 10 years ago by John Moffat.

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October 6, 2015 at 5:10 am #275113
anu1234
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Q 168 :

How did they find normal loss ?
why is it 10/110
October 6, 2015 at 6:13 am #275121
John Moffat
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I do not have a Kaplan revision kit – sorry.
October 6, 2015 at 6:18 am #275123
anu1234
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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
October 6, 2015 at 9:50 am #275138
John Moffat
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For every 100 output the loss is 10.

So if they lose 10 and still output 100, then they must have input 110.
October 6, 2015 at 10:15 am #275140
anu1234
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If they lose 10 , output is still 100 ? how ?
October 6, 2015 at 10:19 am #275146
John Moffat
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Because they must have input 110 !!
October 6, 2015 at 10:26 am #275148
anu1234
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is there any other explanation you can give for my better understanding as to how to arrive at normal loss of 1200
October 6, 2015 at 10:53 am #275153
John Moffat
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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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