In Saphire Ltd. 1,000 units of raw material were introduced in Process-A. The actual output and normal loss of respective processes are as follows: Process Output (units) Normal loss on input units A 900 10% B 680 20% C

CS Executive · Cost and Management Accounting · PYQS · December 2015
In Saphire Ltd. 1,000 units of raw material were introduced in Process-A. The actual output and normal loss of respective processes are as follows: Process Output (units) Normal loss on input units A 900 10% B 680 20% C 540 25% Abnormal effectiveness in Process-C is —
(A) 40 Units
(B) 50 Units
(C) 45 Units
(D) 30 Units.

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Process Costing

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