MANAGEMENT ACCOUNTING Management Accounting

Management Accounting

Questions

(a)

Solution

Gross/Total input

Gross/Total input= Receipts into store

= 20,000 kgs

Normal Loss

NL= 85% of input

= Gross Input x 85%

= 20000 x 85%

= 17000 kgs

Normal Output = 20000 - 17000

= 3000 Units

Actual Output

AO = 14800 kgs

Abnormal loss/gain

Since AO < NO, there is abnormal loss.

Abnormal Loss

=3000 - 14800

=11800kgs

Total cost

TC= 77,000 + 5,600 + 16,500 + 25,500

=1, 24,600 £

Particulars Qty Amount (in £)

To input 20000 77000

To materials 5600

To wages 16500

To Manufacturing Exp. 25500

Total 124600

(b)

Losses

Financial accounting, trading profit, loss account, balance sheet, trial balance and worksheet adjustments,

Losses are confidential based on their character into two ...