A manufacturing unit provides you the following information : Total input of material: 10,000 units Normal spoilage of the material: 4% of the input Total spoiled units: 550 units Total cost of the material @ ₹10 per uni
CS Executive · Cost and Management Accounting · PYQS · June 2018
A manufacturing unit provides you the following information : Total input of material: 10,000 units Normal spoilage of the material: 4% of the input Total spoiled units: 550 units Total cost of the material @ ₹10 per unit: ₹1,00,000 Sales value of the spoiled units: ₹1 per unit Calculate the net cost of abnormal spoilage to be transferred to costing profit and loss account.
Answer & Explanation:
Correct Answer: Option (D)
Official answer key: (D).
Topics: Cost and Management Accounting
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