A company manufactures Chemical X, in a single process. At the start of the month there was no work-inprogress. During the month 300 litres of raw material were input into the process at a total cost of $6,000. Conversion costs during the month amounted to $4,500. At the end of the month 250 litres of Chemical X were transferred to finished goods inventory. The remaining work-in-progress was 100% complete with respect to materials and 50% complete with respect to conversion costs. There were no losses in the process and there is no scrap value available during months when losses occur. If there had been a normal process loss of 10% of input during the month what would the value of this loss have been? A Nil B $450 C $600 D $1,050
A company manufactures Chemical X, in a single process. At the start of the month there was no work-inprogress.
During the month 300 litres of raw material were input into the process at a total cost of $6,000.
Conversion costs during the month amounted to $4,500. At the end of the month 250 litres of Chemical X
were transferred to finished goods inventory. The remaining work-in-progress was 100% complete with respect
to materials and 50% complete with respect to conversion costs. There were no losses in the process and there
is no scrap value available during months when losses occur.
If there had been a normal process loss of 10% of input during the month what would the value of this
loss have been?
A Nil
B $450
C $600
D $1,050
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