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A firm put 4 800 units into production at a total cost of N$56 576. The cost accountant has estimated that there should be a normal spoilage of 5.25% and that it would have a sales value of N$3.25 per unit. At the end of the production process there were 4 760 good units. All the spoiled units were subsequently sold at N$3.85 each.
Question 1: Determine the overall amount in (N$) gain or loss for the period
Select one:
Option a. N$1934. 12 gain
Option b. N$2 599.12 gain
Option c. N$1 786.40 gain
Option d. N$1 934. 12 loss
Option e. None of all
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