Question: Assume that input to a process is 2,000 units at a cost of $18,000. Normal loss is 10% and there are no opening or closing

Assume that input to a process is 2,000 units at a cost of $18,000. Normal loss is 10% and there are no opening or closing inventories.

Required

Determine the accounting entries for the cost of output and the cost of the loss if actual output were as follows:

1500 units (so that actual loss is 500 units)

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