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Hi,
Please help with this question.
A chemical is manufactured in two processes, X and Y. Data for process Y for last month is as follows:
Conversion cost-$12250
Material transferred from process y-2000ltrs @ $4 per ltr
Output transferred to finished goods -1600litres
Closing work in progress is material complete but only 50% processed
All losses are fully processed and have scrap value of $4 per litre
WIP is 100litres
Normal loss is 10% of input
A) what is the value of the completed output?
B) what is the value of closing work in progress
How do I treat scrap ,abnormal loss in equivalent unitsThe examiner has said that there will not be questions with losses and work-in-progress in the same process (and specifically states that in the syllabus).
Questions will either be just with losses, or just with work-in-progress.
This question therefore can not be asked in the exam.I do suggest that you watch our free lectures on process costing which go through everything you need for the exam.
Hi Mr Moffat,
Thank you for taking time to reply to query.
Though I would still love a guide line as to how to handle such.
I believe there is no harm knowing a little more than the needs of an exam.
Thank you once again,
Antonio
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