1.

B
2. D
3. A
4. B
5. L=Abnormal loss
M=Abnormal gain
6. D
7. D
8. D
9. A
10. A
11. A
12. B

13. D

Total Cost −Scrap Value of Normal Loss

Cost Per Unit of Good Output =
Normal Output

$ 20,000+ $ 12,400−( 2,000 ×20 % ×$ 1 )

Cost Per Unit of Good Output = = $20
2,000−400

14. B

$
Expected Output: 1,600
Actual Output: 1,700
Abnormal Gain: 100 its
15. С
Total Costs−Scrap Value of Normal Loss
Cost Per Unit =
Normal Output
$ 52,000+ $ 9,625−( 3,500 ×25 % × $ 8 )
Cost Per Unit =
2,625
Valuation of output = 2,800 kg × $21 = $58,800
16. B
Total Input Costs−Scrap Value of Normal Loss
Cost Per Unit =
Normal Output
2,000× $ 4.50+ $ 13,340−$ 300
Cost Per Unit = = $11.60
1,900

17. С
 Process F:
Input: 65,000
Normal Loss: 5,200 (65,000× 8%)
Excepted Output: 59,800
Actual Output: 58,900
Abnormal Loss 900
Process G:
Input: 37,500
Normal Loss: 1,875 (37,500 ×5 % ¿
Expected Output: 35,625
Actual Output: 35,700
Abnormal Gain 75

18. $265
Value of abnormal loss/gain in the process account
= Abnormal loss/gain units × cost per unit
Input: 5,000 units
Normal loss (5%) (250) units
Expected output 4,750 units
Actual output 4,800 units
Abnormal loss 50 units

Cost per unit = (Input Costs – scrap value of normal loss)/Expected output
Cost per unit = ($22,000 + $3,550 – 250 × $1.5)/4,750 = $5.3
Value of abnormal gain in the process account = 50 × $5.3 = $265
19. A
Expected normal loss = 1000 units. Actual loss (10,000 – 8,500) = 1,500 units. Abnormal loss = 500
units
20. B
21. B
22. B
Total output 25,000 kg
Joint cost per kg= $100,000/25,000=$4
Profit per unit of X= $10-$4
= $6
23. C
Output Selling price Sales value($)
X 5,000 $10 50,000
Y 10,000 $4 40,000
Z 10,000 $3 30,000
120,000

Cost per $ of Sales= $100,000/$120,000= $0.83

Profit of Y
$
Sales 40,000
Cost 33,333
Profit 6,667
24. D
25. A
Total joint costs are= 87,500
Calculation of share for product X:
Sales Value of X $6x10,000=60,000
Sales value of Y $8x15,000=120,000
180,000
(60/180) x $87,500=$29,167
26. Realizable value of product A=12,000x$6.00=$72,000
Realizable value of product B=22,000 x $4.00= $88,000
Total realizable value= $160,000
Joint costs apportioned to product B= $202,000x 88,000/160,000= $56,100