26 February 2012
for instance 5000 units of input at 1000 per unit.normal loss =250 units.actual loss=300 units. so to compute cost of inventories is it correct that abnormal loss of 50 units at 1000 =50000 should be deducted from 50 lacs and then the remaining divided by 4700 to find cost i.e 50 lacs - 50000 divided by 4700