- This topic has 3 replies, 2 voices, and was last updated 3 years ago by
.
- Posts
The following information relates to a company’s refining process for the previous period.
Output to finished goods Normal Loss ;5,811 units valued at $43,582.50
normal loss; 300 units
Actual Loss;: 189 units
All losses have a scrap value of $3 per unit and there was no opening or closing work in progress. What is the value of the input during the period?A. $43,015.50
B. $43,582.50
C. $44,482.50 D. $45,049.50Please do not simply write up a full question and expect to be provided with a full answer. You must have an answer in the same book in which you found the question, so ask about whatever. it is in the answer that you are not clear about and then I will explain.
Write up a t-account in the way I show in my free lectures, and the value of the input is the missing figure so as to make the account balance.
The value per unit of finished goods is 43582.50 / 5811 = 7.50 per unit.
The account is credited with the normal loss valued at the scrap value (so 300 x $3 = $900).
The abnormal gain is 111 units, and is valued in the t-account at the full cost per unit of $7.50.
Actually, i have found this question somewhere in internet. And there is ans.C . So I am confuse . Is that answer is correct?
- The topic ‘Process costing’ is closed to new replies.