Cost and Management AccountingQuestion 5476 of 251
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15. A Chemical is passed through three processes and the output of Process 1 Account is transferred to Process 2 Account. The input units in Process 1 are 58,500 units and the output units are 55,200 units, normal loss is 2% and rest is abnormal loss. You are required to calculate the per unit cost of output units in Process 1 Account, if the total expenses incurred in Process 1 are, 6,87,960.

Options

A` 11.76
B` 12.00
C` 12.20
D` 12.46 COST AND MANAGEMENT ACCOUNTING Answer Key Question No. Answer
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Correct Answer

Option A` 11.76

All Options:

  • A` 11.76
  • B` 12.00
  • C` 12.20
  • D` 12.46 COST AND MANAGEMENT ACCOUNTING Answer Key Question No. Answer

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Detailed Solution & Explanation

The per unit cost of output in Process 1 is calculated as:
Cost per unit=Total Process CostNormal Loss RealisationInput UnitsNormal Loss Units=11.76\text{Cost per unit} = \frac{\text{Total Process Cost} - \text{Normal Loss Realisation}}{\text{Input Units} - \text{Normal Loss Units}} = \text{₹} 11.76
Hence, **Option A** is the correct answer.

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