Intermediate KL Processing Limited has identified that an abnormal gain of 160 litres occurred in its refining process last week. Normal losses are expected and have a scrap value of £2.00 per litre. All losses are 100% complete as to material cost and 75% complete as to conversion costs.

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The company uses the weighted average method of valuation and last week's output was valued using the following costs per equivalent unit: Materials 9.40 Conversion costs 11.20 The effect on the profit and loss account of last week's abnormal gain is A Debit 2528 B Debit 2828 C Credit 2528 D Credit 2848 E Credit 3168