A micro brewery has provided the following information for last month. The inputs into Process 1 last month were: Materials Labour and Overhead The normal loss Losses are sold for € 0.50 per kg. Actual output 1,650 kg Which accounting entry is correct? (round calculations to two decimal places) 2,000 kgs @ €1.60 per kg € 800 10%.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A micro brewery has provided the following information for last month.
The inputs into Process 1 last month were:
Materials
Labour and Overhead
The normal loss
Losses are sold for € 0.50 per kg.
Actual output
1,650 kg
Which accounting entry is correct? (round calculations to two decimal places)
Select one:
O a.
2,000 kgs @ €1.60 per kg
€ 800
10%.
Dr Abnormal Loss Account € 250.00
Cr Profit and Loss Account
€250.00
O b. Dr Profit and Loss Account € 250.00
Cr Abnormal Loss Account
€250.00
Dr Abnormal Loss Account €325.00
Cr Profit and Loss Account
€ 325.00
d.
Dr Profit and Loss Account € 325.00
Cr Abnormal Loss Account
€325.00
Transcribed Image Text:A micro brewery has provided the following information for last month. The inputs into Process 1 last month were: Materials Labour and Overhead The normal loss Losses are sold for € 0.50 per kg. Actual output 1,650 kg Which accounting entry is correct? (round calculations to two decimal places) Select one: O a. 2,000 kgs @ €1.60 per kg € 800 10%. Dr Abnormal Loss Account € 250.00 Cr Profit and Loss Account €250.00 O b. Dr Profit and Loss Account € 250.00 Cr Abnormal Loss Account €250.00 Dr Abnormal Loss Account €325.00 Cr Profit and Loss Account € 325.00 d. Dr Profit and Loss Account € 325.00 Cr Abnormal Loss Account €325.00
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