Reverse Calculations for finding Process input based on Output and Process Losses : Problems

No.	Problems & Solutions [Click Hide/Show to display the solutions below the question]
01.	In a manufacturing unit, raw material passes through four processes I, II, III and IV and the output of each process is the input of the subsequent process. The loss in the four processes I, II, III and IV are respectively 25%, 20%, 20% and 16 2/3% of the input. If the end product at the end process IV is 40,000 kg, what is the quantity of raw material required to be fed at the beginning of process I and the cost of the same at Rs. 5 per kg. Find out also the effect of increase of decrease in the material cost of the end product for variation of every rupee in the cost of the raw material. (C.A. Inter) Solution []
02.	Product X is processed by passing chemical C through four processes where the output of the earlier process becomes the input of the subsequent process. The loss of materials expressed as percentage of input is as follow: Process I - 20%, II - 10%, III-16 2/3%, IV - 8 1/3%. The material lost in each process does not have any resale value. Calculate: The cost per kg. of product X, if the cost of chemical 'C' is Rs. 8 per kg. and The capacity of the process plants for process I, II, III and IV to hold the material for process expressed in metric tonnes of input for each process, if two conditions are be fulfilled, viz., 20% of the space is to be allowed for chemical reactions, and The output of product X from the final process (Process IV) is expected to be 5 metric tones Solution []
03.	An article passes through three successive operations from the raw material to the finished product stage. The following data are available from the production records of particular month: Operation No. Input (No. of Pcs.) Rejected (No. of Pcs.) Output (No. of Pcs.) 1 2 3 60,000 66,000 48,000 20,000 6,000 8,000 40,000 60,000 40,000 (i) Determine the input required to be introduced in the first operation in number of pieces in order to obtain finished output of 100 pieces after the last operation. (ii) Calculate the cost of raw material required to produce one piece of finished product, given the following information: Weight of the finished piece if 0.10 kg and the price of raw material is Rs. 20 per kg. Solution []

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