What is the value of the abnormal gain in August?

Refer to the Exhibit.

PD manufactures a product in a process operation. Normal loss is 5% of input and occurs at the end of the process.

The following data is available for the month of August:

Scrapped units have no value.

There was no opening or closing work in progress for August.

What is the value of the abnormal gain in August?
A . Nil
B . $1,880
C . $1,816
D . $893

View Answer

Answer: B