What is the treatment of unrealised profit in process costing —

CS Executive · Cost and Management Accounting · PYQS · June 2016
What is the treatment of unrealised profit in process costing —
(A) Transferred to profit and loss account
(B) Closing stock valued at transfer price
(C) Eliminated by creating stock reserve
(D) Treated as abnormal gain.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Process Costing

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