Process Costing BPP QuestionForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Process Costing BPP QuestionThis topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts February 19, 2022 at 1:37 pm #648899 bazif17ParticipantTopics: 13Replies: 1☆Good Afternoon,I am struggling on one question in the BPP revision kit.Q) Ellis Co uses process costing to value its output. The following was recorded for the period:Input materials 2000 units at $4.50 per unit Conversion costs 13,340 Normal loss 5% of input at $3 per unit Actual loss 150 unitsThere were no opening or closing inventories.What was the valuation of one unit of output to one decimal place?The calculations from the book says: Input = 2000 x 4.50 = 9000 Conversion = 13340 Normal loss = 5% x 2000 x 3 = 300 Expected = 2000 – 100 = 1900Please can you explain where the 100 units came from at the expected section?Many thanks, February 19, 2022 at 10:20 pm #648913 John MoffatKeymasterTopics: 57Replies: 54643☆☆☆☆☆The input 2,000 units and expect to lose 5%. 5% x 2,000 = 100, so they expect to lose 100 units and expect to produce 1,900 units.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In