CAF-5 · Chapter 7 · Question 3 of 10
Which of the following is the correct formula for calculating the per unit cost of good output in a process with normal loss and scrap recovery?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) (Total process costs − Scrap value of normal loss) / Expected units of output
Explanation
The study text explicitly states the formula for the per-unit cost of good output is: Total process costs − Scrap value of the normal loss, divided by the Expected units of output.
More Process Costing MCQs
- Q5At what value is an "Abnormal Loss" or "Abnormal Gain" recorded in the main process account?
- Q6If the actual loss in a manufacturing process is less than the expected normal loss, the resulting difference is known as:
- Q7Under the First-In-First-Out (FIFO) method of process costing, how are the equivalent units for opening Work-in-Progress (WIP) calculated…
- Q8When applying the Weighted Average method of process costing, how is the cost per equivalent unit calculated?
- Q9In a continuous process where direct materials are added completely at the very beginning of the process, what is the degree of completion…