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dear sir : please conform the answer & and explain below the following information relates a company’s polishing proceea for the previous period. output to finished goods =5408 units valued $29744 and normal loss = 276 units and actual loss =112 unit . All lisses have a scrap value of $2.50 per unit and there was no opening or closing work in progress. What was the value of the input during the period?
Please do not simply set me questions and expect me to provide an answer. You must have an answer in the same book in which you found then question, and so you should ask about whatever it is in the answer that you are not clear about and then I will explain!
Have you watched my free lectures on process costing? I show in the lectures the t-accounts when there are losses and explain how we deal with them.
The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
The cost per unit is $5.50 and therefore the value of the input must be (5408 + 276) x $5.50 = $31,262.
Sorry my mistake – I forgot about the abnormal gain.
As I wrote before, the cost per finished unit is $5.50.
The normal loss is 276 x $2.50 = $690
The abnormal gain is 276 – 112 = 164 units x $5.50 = $902.Therefore, if you write up the t-account as I should in my lectures, the missing figure is the input and it is 29,744 + 690 – 902 = $29,532
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