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50 units are processed at a cost of Rs 80 normal...

This question belongs to Commerce Costing
Costing
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50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________.

Answer & Solution
Correct Answer: Option C
VALUE OF ABNORMAL LOSS = (Total cost - scrap value)/No of unit produced × Abnormal Issue
=(80-(5×.25))/(50-5) × 5
=8.75
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8 Comments
Navada Smith
Navada Smith 4 years ago
It's right 5×0.25=1.25
50-5=45
80-1.25=78.75/45×5


Pratik Kumbhar
Pratik Kumbhar 6 years ago
why
Sachin Ms
Sachin Ms 6 years ago
How to solve this problem
Sunny Singh
Sunny Singh 7 years ago
how this question is right? 444/- is right
Manmeet Singh
Manmeet Singh 7 years ago
50*80=4000-5*.25=1.25. 4000-1.25=3998.75/4000- 5=3995. 3998.75/3995=1.00093867334so abnormal loss is1.*80*1.00093867334=ans is 800.750938672
Manmeet Singh
Manmeet Singh 7 years ago
50*80=4000-5*.25=1.25. 4000-1.25=3998.75/4000- 5=3995. 3998.75/3995=1.00093867334so abnormal loss is1.*80*1.00093867334=ans is 800.750938672
Manoj Kumar
Manoj Kumar 8 years ago
Answer is not correct. Correct answer will be as follows -
(50×80 - 5×0.25)/45 × 5 = Rs. 444.31
Girish Gogula
Girish Gogula 9 years ago
VALUE OF ABNORMAL LOSS = ((50*80)-(5*.25)/(50-5))*5 = 444/-,,,HOW OPTION C IS RIGHT
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