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It is saying that losses made part way through production so in calculation of equivalent units “we do not consider normal loss as it is absorbed in good units.”
Why Equivalent units are not calculated tutor?You will have to tell me which question you are referring to (assuming it is from the BPP Revision Kit).
Tutor, it is line written in Kaplan book (Chapter 9, Illustration 11).
It says as “Calculate EUs for completed output plus the abnormal loss units. Normal loss is absorbed into good output so does not appear in statement of EUs.”I do not have the Kaplan book (only the BPP Revision Kit).
However the statement as you have now typed it is all explained in my free lectures on process costing.
The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
If you are watching my free lectures then you do not really need either of the Study Texts.
A Revision Kit is vital because practice is so important. I personally prefer the BPP Revision Kit, but it is purely a personal thing – the Kaplan Exam Kit is just as good and some people prefer that.
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