Normal loss 20%

Value of scrap € 5.00

Cost per unit of input € 20.00

Cost per
Normal Expected unit of Actual Actual
Actual input Actual input loss Value of scrap output output output scrap
Period (units) (euro) (units) (euro) (units) (euro) (units) (units)
1 1,250 € 25,000 250 € 1,250 1000 € 23.75 500 750
2 1,250 € 25,000 250 € 1,250 1000 € 23.75 1,000 250
3 1,250 € 25,000 250 € 1,250 1000 € 23.75 1,500 250-
 Total cost
Abnormal Total cost of Total Total cost incurred less
Abnormal gain completed Total abnormal accounted total scrap
loss (units) (units) production abnormal loss gain for value
500 0 € 11,875 € 9,375 €- € 21,250 € 21,250
0 0 € 23,750 €- €- € 23,750 € 23,750
0 500 € 35,625 €- € 9,375- € 26,250 € 26,250