The input in a process is 8,600 units and normal loss is considered at 5% of input. If the actual output is 8,200 units, then there will be :

CS Executive · Cost and Management Accounting · PYQS · December 2018
The input in a process is 8,600 units and normal loss is considered at 5% of input. If the actual output is 8,200 units, then there will be :
(A) Abnormal loss of 30 units
(B) Abnormal loss of 400 units
(C) Abnormal gain of 400 units
(D) Abnormal gain of 30 units

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Process Costing

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