A product is completed in three consecutive processes. Details of normal and abnormal losses are as follows: Process | I | II | III Normal loss unit | 250 | 470 | 215 Abnormal loss unit | 50 | - | 35 Abnormal loss value
CS Executive · Cost and Management Accounting · PYQS · December 2019
A product is completed in three consecutive processes. Details of normal and abnormal losses are as follows: Process | I | II | III Normal loss unit | 250 | 470 | 215 Abnormal loss unit | 50 | - | 35 Abnormal loss value (₹) | 300 | - | 770 Abnormal gain unit | - | 70 | - Abnormal gain value (₹) | - | 840 | - Realisable scrap value per unit of process I, II and III are ₹1, ₹5 and ₹6 respectively. Indicate from out of the following, what will be the Abnormal Gain to be transferred to Costing P&L Account ?
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Process Costing
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