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    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 тВ╣10,000. What is the cost per unit?
    A тВ╣10 Correct Answer Incorrect Answer
    B тВ╣11.76 Correct Answer Incorrect Answer
    C тВ╣10.53 Correct Answer Incorrect Answer
    D тВ╣10.00 Correct Answer Incorrect Answer

    Solution

    Normal loss is not assigned cost. So cost is spread over (1,000 тАУ 100) = 900 units. Cost/unit = тВ╣10,000 ├╖ 950 = тВ╣10.53 (abnormal loss is included in cost calculation).

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