Question
Input = 10,000 units @ ₹20/unit, Normal loss = 10%,
Scrap value = ₹2/unit. What is cost per unit of output assuming no abnormal loss?Solution
Cost = ₹2,00,000 Normal loss = 1,000 units ⇒ Scrap = 1,000 × ₹2 = ₹2,000 Net cost = ₹1,98,000 Output = 9,000 units Cost per unit = 1,98,000 / 9,000 = ₹22
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