COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Choose the correct formula to calculate cost per unit (CPU):
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(Input cost-normal loss cost) / (Output unit-normal loss unit)
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(Input cost-normal loss cost) / (Input unit-normal loss unit)
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(Output cost-normal loss cost) / (Output unit-normal loss unit)
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(Input cost-normal loss cost) / normal loss unit
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Explanation:
Detailed explanation-1: -Cost per unit = (Electricity + Rent + Labor + Raw materials) / Number of units.
Detailed explanation-2: -Cost price formula when gain (profit) percentage and selling price is given as, Cost price formula = 100/(100 + Profit%) × SP.
Detailed explanation-3: -Generally the cost of normal loss is absorbed by the cost units. Normal Output = Units introduced – Units of normal loss Normal Cost of Normal Output = Total Cost – Scrap value of Normal Loss. and if there is any scrap value then that will be shown in amount column of the credit side corresponding to lost units.
There is 1 question to complete.