Costing - process costing
This query is : Resolved
09 September 2012
while calculating "equivalant units" why dont we consider "normal loss" i.e we just put it as nil.
please help me asap
thank you
please help me asap
thank you
Rahul Jain
(Expert)
10 September 2012
Dear Srisha,
Normal loss in inherent in the production... so the cost of normal loss units is beared by good units thats y we just put NIL... as this loss has to be there.. Eg... we introduced 100 Kg of Raw material but we know that 10% has to be normal loss.. so in this case we already know thwt Final product will be 90 only.. so the cost of 10 normal loss units will be beared by 90 good units...
Normal loss in inherent in the production... so the cost of normal loss units is beared by good units thats y we just put NIL... as this loss has to be there.. Eg... we introduced 100 Kg of Raw material but we know that 10% has to be normal loss.. so in this case we already know thwt Final product will be 90 only.. so the cost of 10 normal loss units will be beared by 90 good units...
Message likes :
1 times
11 September 2012
thank you so very much yaar...wasnt getting the logic only...thanks again :)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Gst registered proprietorship firm
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on purchase of under construction property from a reseller
- UDIN ISSUE
- TDS on Fixed Assets purchased
- SALARY CAN BE CAPITALIZE
- Non filing of I T Returns
- GST on Renting godown to KFCSC for Storage of Raagi
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
