- In process costing normal loss is calculated before production ,so how in the question no. 2 while calculating normal loss for process 2 ,we had taken the output amount i.e 9750 and not taking the amount 9800 (10000-2%) and same with process 3
Nishant guptaBeginner
Process costing
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Normal loss in process 1 is 2% but actual output is 9750. So, 200 is normal loss and 50 is abnormal loss.
Similarly, normal loss for process 2 is 5% but actually 9400 is produced so you’ll get abnormal gain in this case