79. In a machine process, the normal spoilage rate to be 2% of input. Spoiled units are sold for 50 paise each. In a period, 5200 units were introduced at a cost of ₹2 each. If the total output of good units was 4850, wh

CS Executive · Cost and Management Accounting · PYQS · June 2021
79. In a machine process, the normal spoilage rate to be 2% of input. Spoiled units are sold for 50 paise each. In a period, 5200 units were introduced at a cost of ₹2 each. If the total output of good units was 4850, what would be the amount to be written off to the P/L Account in respect of abnormal loss. The other expenses in the process amounted to ₹4,940.
(A) ₹208
(B) ₹525
(C) ₹492
(D) ₹615

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Process Costing

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