Mehta Ltd introduced 5000 units in a process at a cost of Rs10000.The wages and overheads incurred are Rs 10000 and Rs8000 respectively. It is expected that 10% of the output is likely to be defective. Actual output of the goods is 4400units. The rectification of defective units costs Rs 4 per unit You are required to: Calculate the cost per unit Reflect the abnormal loss and cost of rectification in the process account, if any.
Mehta Ltd introduced 5000 units in a process at a cost of Rs10000.The wages and overheads incurred are Rs 10000 and Rs8000 respectively. It is expected that 10% of the output is likely to be defective. Actual output of the goods is 4400units. The rectification of defective units costs Rs 4 per unit You are required to: Calculate the cost per unit Reflect the abnormal loss and cost of rectification in the process account, if any.
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...
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Mehta Ltd introduced 5000 units in a process at a cost of Rs10000.The wages and
output is likely to be defective. Actual output of the goods is 4400units.
The rectification of defective units costs Rs 4 per unit
You are required to:
- Calculate the cost per unit
- Reflect the abnormal loss and cost of rectification in the process account, if any.
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