SFAX lte, which manufactures a single product, began operations on January 1, 2014. Material A is added

SFAX ltée, which manufactures a single product, began operations on January 1, 2014. Material A is added at the beginning of the production process and packaging material B at the end of the process. Transformation costs are incurred evenly throughout the process. Inspection is done when manufacturing has ended, but before packaging material B is added. As part of this production process, rejected items, which normally account for 4% of acceptable production, are removed . The production figures for the first quarter of 2014 can be summarized as follows:

Units started: 18,000 units

Acceptable units completed and released: 15,000 units

Closing stock of products in progress: 2,000 units

According to its continuous production costing system based on the CMP method, SFAX ltée incurred the following costs per equivalent unit during the first quarter:

Material A	Material B	Processing costs
$ 11.00	$ 0.80	$ 15.00

The abnormal release loss for the first quarter was?

Answer rating: 100% (QA)

To calculate the abnormal release loss for the first quarter we need to determine the number of abno... View the full answer