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Process costing

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Process costing

  • This topic has 2 replies, 2 voices, and was last updated 9 years ago by Tod.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • November 24, 2015 at 8:03 pm #284984
    Tod
    Member
    • Topics: 9
    • Replies: 11
    • ☆

    Output 8000 kg
    Normal loss 20 %
    Abnormal gain 400 kg

    What is the normal loss for the period ?
    2100
    1900
    1680
    1520

    November 24, 2015 at 9:25 pm #285023
    HazE
    Participant
    • Topics: 11
    • Replies: 84
    • ☆☆

    1900 would be the answer. And you should state the right answer if you know it so the person who is trying to solve it is sure about the answer before he or she explains it to you
    Thanks

    The way i work it out is think about what the normal output would be if there wasnt any abnormal gain. Which clearly would have been 8000 minus 400 which gives us 7600. Now this 7600 is the output after 20 percent of normal loss so that means 7600/.80 will give us the output if there was no normal loss at all.. which is 9500
    so subtract 7600 from 9500 gives us 1900

    November 25, 2015 at 9:37 am #285131
    Tod
    Member
    • Topics: 9
    • Replies: 11
    • ☆

    I didn’t know the answer 🙂 but now it’s clear to me .
    Thanks a lot !

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    Posts
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