Question: A factory operates a processing operation which has a normal loss of 10%. Scrapped units sell for $2 per kg. The following information is available

A factory operates a processing operation which has a normal loss of 10%. Scrapped units sell for $2 per kg. The following information is available for June.

Materials used 2,000 kg @ $4 per kg Output 1,700 kg What is the scrap value for the abnormal loss?

A Nil B $200 What would the double entry be for the scrap value of the abnormal loss?

C Dr Scrap value Cr Abnormal loss account D Dr Scrap value Cr Process account

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