Paper 2 · Process costing
In Process I of Shaba Limited, 5,000 litres of direct material were input for the quarter. Normal loss is 20% of input. Calculate the normal loss in litres for Process I.
Model answer
1000
Also accepted: 1,000, 1000 litres, 1,000 litres
Explanation: Normal loss = 20% × 5,000 litres = 1,000 litres.
Derived from ZIMSEC Accounting Paper 2, June 2018, Q3
