Question
12,000 Kg of a material were input to a process in a
period. The normal loss is 10% of input There is no opening or closing work-in-progress. Output in the period was 10,920 Kg. What was the abnormal gain/loss in the period?Solution
Normal loss = 10% of 12,000 Kg = 1,200 Kg. Expected output = Input - Normal loss = 12,000 Kg - 1,200 Kg = 10,800 Kg Actual output = 10,920 Kg Abnormal gain = Actual output - Expected output = 10,920 Kg - 10,800 Kg = 120 Kg.
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