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A chemical process has a normal yield of 90%. In a period, 5000 kgs of material were introduced and there was an abnormal loss of 150 kgs?

 The quantity of good production is

(a)4850 kgs

(c)4500 kgs

(b)4650 kgs

(d)4350 kgs 

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Question added by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date Posted: 2015/08/10
Vincent Bob Apilado
by Vincent Bob Apilado , Data Entry Specialist , Saudi Airlines

The answer would be (d).4350 kgs.90 percent of5000 kgs is4500 which is the normal yield of90 percent. Then less the abnormal loss of150 kgs. to the normal yield of4500, the answer is4350 kgs.

Md. Moshiur Rahman Sumon
by Md. Moshiur Rahman Sumon , Assistant General Manager( Corporate Finance & Head of Internal Audit) , Progressive Life Insurance Company Limited

The calculation is bellowed :

  i) Normal yielding production capacity is=(5000*90%)

                                                                           =4500 kgs

  ii) Abnormal Loss                                        =150 kgs

   Hence  qty of goods production is =(4500-150) kgs

                                                                 =4350 Kgs

  So (D) is the correct answer.

 

Vaiyapuri Gopalakrishnan
by Vaiyapuri Gopalakrishnan , Manager - After Sales , M/s Saud Bahwan Automotive llc

90% of5000 =4500 Kg -  Loss =4350 Kg.

Ansary Masacal, CPA
by Ansary Masacal, CPA , State Auditor II , Commission On Audit

the answer is letter (d)4350 kgs

 

Ahmer Zamir
by Ahmer Zamir , Consultant , Saleem Associates & Co

The correct option is a)4850 Kg

5000Kgs x90% yield =4500

The quantity of good production is4500

But Equivalent unit production for unit cost  will be =4500+150=4650

150 kg is avoidable lost so that it will be part of good manufactured unit.

Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

normal yield is90% only, so90% of5000 kg is4500 kg only.

And there is a abnormal loss of150 kg, so quantity of good production is4500-150 =4,350kgs.Option(d)is the answer.Thanks.

Mohsin Patel
by Mohsin Patel , Accounting Analyst , Water G.

I'm not sure if I'm right, I haven't done process accounting.

 

Excellent = Above4500 kgs (abnormal gain)

Normal Yield =4500 kgs  (90% of5000 kgs)

Actual Yield =4350 kgs  (4500kgs  -150 abnormal loss)

Hossam Mohamed
by Hossam Mohamed , Senior Accountant , Allied Arab Assurance Brokerage

answer is d)4350=(5000*.90)-150.

Anoop Mohan
by Anoop Mohan , Finance Manager , Arafa plywoods

4500 kgs is normal and in this scenario it produced only4350kgs................

Mustafa Haider
by Mustafa Haider , Assistant Manager Accounts , Kamal Hosiery Mill

THE CORRECT ANSWE IS4350KGS

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