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I went through two different tutorials on process costing/normal loss and found that they were calculated differently. One used the total units to determine the cost per unit, and the other used the net total units (after deducting the normal loss) to determine cost per unit. Since the both give very different answers, which is correct? I need to know.
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Hi Bernie,
cost per unit is ALWAYS:
(Total cost – expected scrap proceeds)
expected outputThis issue might have been that the question didn’t have expected scrap proceeds.
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