COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If input unit for Process 1 is 20, 000 unit, a normal loss for 2% of input will be:
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40 unit
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4000 unit
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400 unit
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4 unit
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Explanation:
Detailed explanation-1: -Solution(By Examveda Team) = 10000-(10000 × 20%) = 8000 units. = 8000-400 = 7600 units.
Detailed explanation-2: -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.
Detailed explanation-3: -Total value of the output = Total expenditure incurred in the process. Output units = input units.
There is 1 question to complete.