A spice is passed through two processes and the output of Process I-Grinding, transferred to Process II-Packaging. The input units in Process 1 are…

CA Intermediate · Cost and Management Accounting · PYQS · May 2025
A spice is passed through two processes and the output of Process I-Grinding, transferred to Process II-Packaging. The input units in Process 1 are 7,500 kgs and the output units are 7,275 kgs, abnormal gain is 150 kgs. You are required to calculate the normal loss percentage and value of abnormal gain, if the total expenses incurred in Process I are - 1,50,750 and scrap has realisable value of 3 per unit.
(A) 4% and - 3,174
(B) 5% and - 3,200
(C) 5% and - 3,150
(D) 5.10% and 3,015

Suggested Answer and Working Notes:

Correct Answer: Option (C)

5% and - 3,150

Topics: Process & Operation Costing

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