d.Classify the following items into normal loss or abnormal loss.Evaporation of material during processLoss due to inefficient working of new employeesUnexpected defect of materialUnavoidable loss of materiali.i.ii.iv. EZ Cooking Sdn Bhd is a manufacturing company that produces a special paste known as"Instant Magic Paste". The product is marketed throughout the country and the demand forthe product keeps increasing. The production of the product passes through two processesknown as Mixing and Finishing.The following information relates to the production of "Instant Magic Paste" for the month ofMay 2019.Mixing ProcessMaterialDirect labourProduction overheads6,500 kg at a total cost of RM41,500RM15,400RM4,5906% of total input, with a scrap value of RM1.00 perkg.6,120 kgsNormal lossActual outputFinishing ProcessMaterialLabourOverhead680 kg at a total cost of RM19,800RM16,250RM6,260200 kgs at a total cost of RM2,8001,000 kgsOpening Work in ProgressClosing Work in ProgressDegree of completion for both opening and closing work in progress are as follows:Opening Work in Progress Closing Work in Progress100%From previous processMaterialLabourOverheads100%100%50%70%80%60%40%Normal loss for Finishing Process is expected to be 4% of total input and they can be soldat RM2.00 per kg. Actual losses recorded were 300 kgs.Required:

Normal loss occurs naturally and cannot be avoided during manufacturing process. Abnormal loss…

Answered: items into normal loss or abnormal…

Business

Accounting

items into normal loss or abnormal loss.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 13E: Eyring Manufacturing produces a component used in its production of washing machines. The time to...

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