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Refer to the Exhibit.
PD manufactures a product in a process operation. Normal loss is 5% of input and occurs at the end of the process. The following data is available for the month of August:
Scrapped units have no value.
There was no opening or closing work in progress for August.
What is the value of the abnormal gain in August?
Suggested Answer: B, C, E
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39 comments · newest first
HA
Hassie
11 months ago
Is it really that straightforward? I’m a bit confused.
AL
Aleta
11 months ago
Totally agree with you, Troy! That makes sense.
CA
Carolann
11 months ago
Wait, how can there be an abnormal gain if scrapped units have no value?
TR
Troy
12 months ago
I think the abnormal gain should be $1,880.
VI
Vi
12 months ago
Normal loss is 5%, so we need to calculate based on that.
EL
Eleonore
1 year ago
I feel like I might have seen a question like this before, and I think the answer was around $1,880, but I'm not confident about the calculations.
SE
Serita
1 year ago
I think the abnormal gain could be nil if the output matches the expected loss. I just can't recall how to confirm that with the numbers given.
SA
Sanda
1 year ago
This question seems similar to one we practiced where we had to calculate the abnormal gain based on input and loss percentages. I think the normal loss is 5%, but what if the input changes?
CA
Carmelina
1 year ago
I remember we discussed normal loss and how it affects the calculation of abnormal gain, but I'm not entirely sure how to apply it here.
DI
Dion
1 year ago
Hmm, I'm not sure I fully understand how to approach this. Maybe I should review the process costing material again before attempting to solve it.
RO
Rory
1 year ago
I'm feeling pretty confident about this one. I just need to do the math carefully and I think I can get the right answer.
EV
Eve
1 year ago
Okay, let me think this through step-by-step. The normal loss is 5% of the input, so I need to calculate the expected output and compare that to the actual output to see if there is any abnormal gain.
MA
Marla
1 year ago
This seems like a straightforward process costing question. I'll need to calculate the normal loss and then determine if there is any abnormal gain.
LI
Lillian
1 year ago
I'm a bit confused by the information provided. What exactly is the normal loss percentage and how do I use that to find the abnormal gain?
GE
Georgeanna
1 year ago
I'm pretty sure decision tables use DMN, but I'll double-check the options just to be sure.
ZI
Zita
1 year ago
This question seems pretty straightforward. I think the key is to identify the two least important concerns from the list provided.
YU
Yuette
1 year ago
I remember learning about that file in class. If the /etc/nologin file is present, it will block regular users from logging in.
JU
Junita
1 year ago
Maybe the 'scrapped units' are just the factory's way of saying 'we accidentally made a few extra'.
AN
Annalee
1 year ago
C) $1,816
KI
Kiley
1 year ago
B) $1,880
SH
Shannan
1 year ago
A) Nil
JU
Julio
2 years ago
Wait, is this a trick question? What if the abnormal gain is actually a loss? Better not overthink it.
RA
Raymon
1 year ago
C) $1,816
AL
Alaine
1 year ago
B) $1,880
ES
Esteban
1 year ago
A) Nil
NI
Nicolette
2 years ago
This is a classic inventory problem. I think the key is to figure out the total input and then subtract the normal loss and the scrapped units.
CH
Chi
1 year ago
Actually, the correct answer is A) Nil.
ZO
Zoila
1 year ago
I calculated it and got D) $893.
AL
Alaine
1 year ago
Then we can subtract the normal loss and scrapped units to find the abnormal gain.
CA
Carrol
1 year ago
I think we need to calculate the total input first.
CR
Crissy
1 year ago
Then we can subtract the normal loss and scrapped units to find the abnormal gain.
LU
Lucy
1 year ago
I think we need to calculate the total input first.
CA
Cathern
1 year ago
I'm not sure, I think it might be C) $1,816.
LO
Loise
1 year ago
I think the answer is B) $1,880.
TH
Thaddeus
2 years ago
Hmm, no opening or closing work in progress. That makes it easier to calculate the abnormal gain, but I'll need to double-check my work.
TH
Theron
2 years ago
The question seems straightforward, but I'm a bit confused about the normal loss rate. Is that 5% of the input or the output?
MA
Maryann
2 years ago
Why do you think it's C)?
KI
Kindra
2 years ago
I disagree, I believe the answer is C) $1,816.
MA
Maryann
2 years ago
I think the answer is B) $1,880.