For an input of 4,000 kg of material introduced in the process, the normal loss is 6%. If the actual production from the process is 3,700 kg, the…

CA Intermediate · Cost and Management Accounting · MTP · January 2026
For an input of 4,000 kg of material introduced in the process, the normal loss is 6%. If the actual production from the process is 3,700 kg, the abnormal loss is:
(A) 100 kg
(B) 140 kg
(C) 80 kg
(D) 60 kg

Suggested Answer and Working Notes:

Correct Answer: Option (D)

60 kg

Topics: Process & Operation Costing

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