- This topic has 1 reply, 2 voices, and was last updated 2 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Process Costing
“During the month Job A was completed. If Job A was for an order of 1,000 units. However, due to some faulty processing, a total of 1,100 units (including 100 spoiled units) was produced. The total cost incurred for Job A was $3,850.
Normal spoilage was set at 4% of good units produced.”
With reference to the above question, do i take the total quantity as 1,000 or 1,100 units? Because if i take 1,100 as the total, then the normal spoilage is 44 instead of 40 using 4% as the standard in this question.
Any clarification is helpful. Thank you
The question says that the normal spoilage is “4% of good units produced”.
Although 1,100 units were produced, that included 100 spoiled units, and so only the remaining 1,000 were ‘good units’.