Question

find abnormal loss and closing stock​

Answer 1

Answer:

Explanation:

Goods sent on consignment

• 10,000 × 50 = 5,00,000

Consigner expense

• Freight and insurance = 2800

• Dock charges and sundry expense = 800

Abnormal loss

• 2000 × 50 = 1,00,000
• (+)Consigner expense = 2,800 × (²⁰⁰⁰/₁₀₀₀₀) = 560
• Abnormal loss = 1,00,560

Consignment inventories

• 1,000 × 50 = 50,000
• (+)Consigner expense = 2,800 × (¹⁰⁰⁰/₁₀₀₀₀) = 280
• Consignment inventory = 50,280