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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:-
Answer & Solution
Correct Answer:
Option
A
VALUE OF ABNORMAL GAIN = (Total cost - scrap value)/No of unit produced × Abnormal Issue
=(46000-(400×2.50))/(4000-400) × 200
=2500
=(46000-(400×2.50))/(4000-400) × 200
=2500
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Login46000- 400×2.50/ 4000-400 = 12.5
Abnormal gain= 12.5 ×200(:-4000-3800)
= 2500