Question
In a processing unit, 1,000 units are introduced in Process
A. 100 units are normal loss, and 50 units are abnormal loss. Cost incurred is ₹10,000. What is the cost per unit?
Solution
Normal loss is not assigned cost. So cost is spread over (1,000 – 100) = 900 units. Cost/unit = ₹10,000 ÷ 950 = ₹10.53 (abnormal loss is included in cost calculation).
More Accounts Questions
- A company follows the accrual basis of accounting and recognizes revenue when the goods are dispatched, not when cash is received. However, in its final ac...
- Post-merger, the acquirer reports a goodwill of ₹120 crore, 40% higher than the net assets acquired. Upon impairment testing, only ₹10 crore is recoverable...
- Satyam Ltd. has a WACC of 5%. The sustainable growth rate of the company is 3%. The stock is trading at the price of Rs. 40 in the market. Assuming the mar...
- Which of the following is NOT an admissible expense while computing business income?
- Which of the following is recorded under other comprehensive income (OCI) typically?
- Material costing Rs. 700 in the erection of the machinery and the wages paid for it amounting to Rs. 400 should be debited to:
- With amortized loans, such as a mortgage, which of the following statements is correct?
- As per Schedule III of the Companies Act, 2013, the current maturities of long term debt have to be shown under which of the following heading?
- Family Pension is taxable under which head of Income?
- Calculate net working capital?
