Calculate the normal loss and abnormal loss, Applied Statistics

Chemical processors manufacture wondercool using two processes- mixing and distillation. The following details relate to the distillation process for a period.

No opening work in progress

Input from Mixing                   36,000kg at a cost of K166,000

Labour for the period              K43,800

Overheads for the period        K29,200

Closing work in progress of 8,000kg, which was 100% complete for materials and 50% complete for labour and overheads.

The normal loss in distillation is 10% of fully complete production. Actual loss in the period was 3,600kg, fully complete, which was scrapped.

a) Calculate the normal loss and therefore abnormal loss or gain.

b) Prepare the distillation process a/c for the period, showing clearly weights and values

Posted Date: 3/1/2013 7:38:29 AM | Location : United States







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