Cost and Management AccountingQuestion 5471 of 251
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10. Calculate amount of Abnormal Loss during storage to be transferred to Costing Profit & Loss Account (based on average price)

Options

A` 2,04,000
B` 2,04,760
C` 2,03,760
D` 2,05,320
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Correct Answer

✅ Option A — ` 2,04,000

All Options:

  • A` 2,04,000 ✓
  • B` 2,04,760
  • C` 2,03,760
  • D` 2,05,320

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Detailed Solution & Explanation

The abnormal loss during storage is calculated by multiplying the abnormal wastage units by the unit cost under average price method:
Abnormal Loss=Abnormal Wastage Units×Cost per unit\text{Abnormal Loss} = \text{Abnormal Wastage Units} \times \text{Cost per unit}
Abnormal Loss=40 units×₹5,100=₹2,04,000\text{Abnormal Loss} = 40 \text{ units} \times \text{₹} 5,100 = \text{₹} 2,04,000
Hence, **Option A** is the correct answer.

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