Emily Thompson

I'm having some trouble understanding this question, can someone please explain to me how one would go about working this question?

Costs totalling $4,250 were incurred in a process in a period. 80 units of output were rejected and destroyed in the period, 20 units more than allowed for as a normal loss, leaving 420 units of good production to be transferred to finished goods.

What is the amount written off as abnormal loss (to the nearest $)?


A $170
B $177
C $193
D $202




thanks
emily

MadCount

I see the post is just before the June exam, hope you've found the answer.
I don't quite get the question too, you sure there aren't typos? Can't figure out the Normal Loss and Abnormal Loss units. Thats key to finding cost per unit and eventual answer.