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MA BPP Revision Kit 2020-2021, Process,Joint,Byproduct, 8b.9 & 8b.11 Pg 71

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › MA BPP Revision Kit 2020-2021, Process,Joint,Byproduct, 8b.9 & 8b.11 Pg 71

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 16, 2021 at 6:42 pm #614556
    Asif110
    Participant
    • Topics: 70
    • Replies: 125
    • ☆☆

    Greetings good sir,

    8b.9
    Could you please use made up figures to prove option 1 and disprove option 2 ?

    8b.11
    Why doesn’t the answer at the back deduct the 400kg from 2000kg for the By-product ? That’s what I did. We should deduct both a) the value of the by product as a negative cost to reduce the cost, b) as well as the units of the by product from the main product, to increase the cost. Just like for Normal loss.
    The working only follows a) and ignores b) which I followed through.

    March 17, 2021 at 7:54 am #614573
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    8b.9 Given that the costs are apportioned on the same basis as the sales value, then automatically the ratio of profit to the sales must be the same for each product. For figures check the numbers in the example that I work through in my lecture on this.

    8b.11 The question specifically says that they produce 2,000 kg of the main product and 400 kg of a by-product. Therefore the total production was 2,400 kg (the 2,000 of the main product cannot also include 400 of the by-product).

    March 17, 2021 at 2:06 pm #614603
    Asif110
    Participant
    • Topics: 70
    • Replies: 125
    • ☆☆

    Thankyou sir.

    March 17, 2021 at 3:53 pm #614614
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘MA BPP Revision Kit 2020-2021, Process,Joint,Byproduct, 8b.9 & 8b.11 Pg 71’ is closed to new replies.

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