CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 61 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 61
Topic #: 1

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?

ANil

B$1,880

C$1,816

D$893

Show Suggested Answer

Suggested Answer: B, C, E

https://www.cgma.org/resources/reports/globalmanagementaccountingprinciples/about-the-principles.html#?tab-1=3

by Alpha at Dec 13, 2023, 06:59 PM

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Junita

2 months ago

Maybe the 'scrapped units' are just the factory's way of saying 'we accidentally made a few extra'.

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Annalee

9 days ago

C) $1,816

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Kiley

11 days ago

B) $1,880

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Shannan

1 months ago

A) Nil

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Julio

2 months ago

Wait, is this a trick question? What if the abnormal gain is actually a loss? Better not overthink it.

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Raymon

27 days ago

C) $1,816

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Alaine

1 months ago

B) $1,880

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Esteban

1 months ago

A) Nil

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Nicolette

2 months 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.

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Chi

13 days ago

Actually, the correct answer is A) Nil.

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Zoila

21 days ago

I calculated it and got D) $893.

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Alaine

1 months ago

Then we can subtract the normal loss and scrapped units to find the abnormal gain.

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Carrol

1 months ago

I think we need to calculate the total input first.

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Crissy

1 months ago

Then we can subtract the normal loss and scrapped units to find the abnormal gain.

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Lucy

1 months ago

I think we need to calculate the total input first.

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Cathern

1 months ago

I'm not sure, I think it might be C) $1,816.

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Loise

2 months ago

I think the answer is B) $1,880.

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Thaddeus

2 months 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.

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Theron

2 months 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?

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Maryann

3 months ago

Why do you think it's C)?

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Kindra

3 months ago

I disagree, I believe the answer is C) $1,816.

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Maryann

3 months ago

I think the answer is B) $1,880.

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