Process Costing Normal Loss, Abnormal Loss and Abnormal Gain

The video is for ACCA, CPA, ICAN, CA, CIMA and other management accounting fields for certificates, diploma and degrees.
The video explains a part of process costing on how to obtain normal loss, abnormal loss and abnormal gain both in units and value with an example started at 05:50. Process costing is a decent part of cost accounting where normal loss, abnormal loss and abnormal gain are observed. #NormalLoss #acca #kasneb

[@bessymalobola1338]

This was truly helpful, thank you so much

[@hybridaccounts]

You are always welcome.
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[@lubafiafeez4233]

thanks very much for this video.

[@hybridaccounts]

You are welcome Lubafi.
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[@D_Spicity]

✔️✔️

[@hybridaccounts]

Thanks.
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[@Hurtymore]

Thanks

[@olabodemoboluwarin2768]

Finally what I was looking for, but If I may ask, how many decimal places is recommended for process costing? Can we approximate?

[@hybridaccounts]

Hello.
Approximation is allowed.
You may decide to use say 2 decimal places.
For any query, you can also call via WhatsApp on [phone].
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[@Hurtymore]

Thank you

[@regularbloke7410]

You expect to produce 90 good units and 10 damaged units which gives 100 in total. When you spread your costs over units when calculating cost per unit why do you exclude 10 damaged units from total number of units ? You incurred costs to produce damaged units right so why do you exclude damaged units from overal number of units ?

[@hybridaccounts]

Hello.
Good question.
The normal loss units were excluded because they are measured differently from the rest of units ie. at scrap value which is usually lower than the normal unit cost.
So we eliminate it's deemed cost from total cost as well as it's units from total units.
Is it a bit clear?
You can also reach me on Whatsapp via [phone] via SMS or call for more clarification.
Thanks.

[@regularbloke7410]

@@hybridaccounts thanks for reply. What about abnormal gain ? You value them at the full cost per unit but abnormal gain units were excluded from cost per unit calculation. Why do you value them at full cost per unit ?

[@hybridaccounts]

Again, good question.
Actual loss is a combination of Normal loss and Abnormal loss or gain.
Only units we expected to lose at the start which represent normal loss are valued at Scrap Value.
The rest are valued at cost per unit although if abnormal loss or gain have scrap value, the amount is netted against the cost per unit.
How about that?
You can also call.

[@hybridaccounts]

You might also learn more about Process Costing here m.ua-cam.com/video/2XjMoCg3UHE/v-deo.html