Following information is available of PQR for year ended March, 20XX: 4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs 2.50 per unit is scrap value and Rs 46,000 incurred towards total process cost then amount on account of abnormal gain to be transferred to Costing P&L will be:-
A. Rs 2,500
B. Rs 2,000
C. Rs 4,000
D. Rs 3,500
Answer: Option A
Solution (By Examveda Team)
VALUE OF ABNORMAL GAIN = (Total cost - scrap value)/No of unit produced × Abnormal Issue=(46000-(400×2.50))/(4000-400) × 200
=2500
(46000-1000/3600)× 300= 2500
(Total cost -scrap value/ no of unit produced) then × abnormal issue.
46000- 400×2.50/ 4000-400 = 12.5
Abnormal gain= 12.5 ×200(:-4000-3800)
= 2500
Total output is 4000. 10 percentage is Abnormal loss that is 4000*10%. Scrap value is 2.5 . Amount is 2.5* 400
I am not clear this numberical
(46000-{400*2.5})*200units/3600 units=2500
Please somebody explain the answer
Solution
How to calculate the amount?