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Hello sir,
Note page71 question no 6.
It says that :
input is 3000 units,
Expected loss 10% of in put ( which is300 units)
Output is 2900 units.
The answer says that I have to take those 300 units as normal loss but
Input – output= 100 only i think there is abnormal gain of 200 units .
But I confused can you please make it clear .In future you must ask in the Ask the Tutor Forum if you wish me to answer – this forum is for students to help each other.
The normal (or expected) loss is 300 units, and the costings are done based on the expected loss. Since the actual loss is only 100 units, there is indeed an abnormal gain of 200 units and this is costed out at the full cost per unit (although the question only requires you to value the actual output, which will also be valued at the full cost per unit).
Thank you very Much sir,
I have questioned this under ask the tutor forum but don’t know how it landed in this place sorry for this I will be asking in the right place from now on.hope won’t appear in Acca forum.
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