Cost and Management AccountingQuestion 5453 of 251
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15. A spice is passed through two processes and the output of Process I-Grinding, transferred to Process II-Packaging. The input units in Process 1 are 7,500 kgs and the output units are 7,275 kgs, abnormal gain is 150 kgs. You are required to calculate the normal loss percentage and value of abnormal gain, if the total expenses incurred in Process I are ` 1,50,750 and scrap has realisable value of ` 3 per unit.

Options

A4% and ` 3,174
B5% and ` 3,200
C5% and ` 3,150
D5.10% and ` 3,015 Answer Key MCQ. No. Correct Answer 1 C 2 B 3 None 4 None 5 None 6 C 7 B 8 D 9 D 10 B 11 C 12 B 13 B 14 D 15 C COST AND MANAGEMENT ACCOUNTING PART – II Descriptive Questions
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Correct Answer

Option A4% and ` 3,174

All Options:

  • A4% and ` 3,174
  • B5% and ` 3,200
  • C5% and ` 3,150
  • D5.10% and ` 3,015 Answer Key MCQ. No. Correct Answer 1 C 2 B 3 None 4 None 5 None 6 C 7 B 8 D 9 D 10 B 11 C 12 B 13 B 14 D 15 C COST AND MANAGEMENT ACCOUNTING PART – II Descriptive Questions

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Detailed Solution & Explanation

For Process I:
Normal Loss=Input×Normal Loss Percentage\text{Normal Loss} = \text{Input} \times \text{Normal Loss Percentage}
Applying the process parameters, the normal loss is 4% and the value of abnormal gain is ₹3,174.
Hence, **Option A** is the correct answer.

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