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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 โ‚น10,000. What is the cost per unit?
      A โ‚น10 Correct Answer Incorrect Answer
      B โ‚น11.76 Correct Answer Incorrect Answer
      C โ‚น10.53 Correct Answer Incorrect Answer
      D โ‚น10.00 Correct Answer Incorrect Answer

      Solution

      Normal loss is not assigned cost. So cost is spread over (1,000 โ€“ 100) = 900 units. Cost/unit = โ‚น10,000 รท 950 = โ‚น10.53 (abnormal loss is included in cost calculation).

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