R makes one product, which passes through a single process. Details of the process account for period 1 were as follows:
...........................................................$
Material cost – 20 000kg ...........26,000
Labour cost .................................12,000
Production overhead cost ...........5,700
Output .........................................18,800kg
Normal losses .............................5% of input
There was no work in progress at the beginning or end of the period. Process losses have no value. The cost of the abnormal loss (to the nearest $) is:
(a) $437
(b) $441
(c) $460
(d) $465