CA Inter P4 · Chapter 9 · Question 2 of 11
A process was charged with 6,000 units at a total cost of ₹3,07,200. Normal loss is 10% of input, saleable as scrap at ₹8 per unit. Actual output transferred was 5,500 units. The value of abnormal gain is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) ₹5,600
Explanation
Normal loss = 10% x 6,000 = 600 units with scrap value ₹4,800. Normal output = 5,400 units. Cost per unit = (₹3,07,200 - ₹4,800) / 5,400 = ₹56. Actual output 5,500 exceeds normal output by 100 units, so abnormal gain = 100 x ₹56 = ₹5,600.
More Process and Operation Costing MCQs
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