A product passes through Process-I. Input raw material issued were 8,000 units. Normal loss anticipated was 10% of input with realisable value of 5…

CA Intermediate · Cost and Management Accounting · MTP · May 2024
A product passes through Process-I. Input raw material issued were 8,000 units. Normal loss anticipated was 10% of input with realisable value of 5 per unit. 7,600 units of output were produced and transferred to next process. If the total cost incurred under Process-I was - 40,000, then amount of abnormal gain/(loss) is:
(A) ₹ 2,000
(B) ₹ (5,000)
(C) ₹ (2,500)
(D) ₹ 3,000

Suggested Answer and Working Notes:

Correct Answer: Option (A)

₹ 2,000

Topics: Process & Operation Costing

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