In a company adopting process costing the output of a process is transferred to next process by adding 25% profit on transfer price. In a particular period the total cost and profit of the process amounted to ₹70,500 and
CS Executive · Cost and Management Accounting · PYQS · December 2017
In a company adopting process costing the output of a process is transferred to next process by adding 25% profit on transfer price. In a particular period the total cost and profit of the process amounted to ₹70,500 and ₹9,500 respectively. The total value of closing stock was ₹6,000. Then the value of unrealized profit in closing stock of the process is: (A) ₹712 (B) ₹768 (C) ₹816 (D) None of the above
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Process Costing
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