Illustration 1. XItd is having a business of generating Thermal Electricity. The company raises water from a lake nearby. The Water Collection Cost consists of water collected from lake and primary treatment. Thereafter the Water is transferred to Water Treatment Cost Centre for secondary treatment. The treatment water is further transferred to Water De- mineralization Cost Centre for power generation and to the Township for domestic use. Following information is provided for the respective cost centres. Particulars UOM Township Water Collection Cost Centres Water De- treatment mineralization 3,80,000 2,60,000 3,60,000 2,55,000 KL 4,00,000 1,00,000 Quantity of water raised / received Quantity Transferred Cost of Water raised KL 3,80,000 4,00,000 80,000 Chemicals 3,00,000 3,00,000 50,000 3,00,000 50,000 Salary Insurance Depreciation Repairs & Maintenance Total 2,50,000 2,50,000 40,000 30,000 40,000 6,10,000 24,000 40,000 30,000 50,000 7,40,000 8,84,000 Information about water quantity raised and lost in transfer. Quantity (KL) Cost Centres Actual Normal From Water Collection to Water Treatment 20,000 15,000 From Water Treatment to De-mineralization 20,000 17,000 From Water treatment to Township From De-mineralization to Power Generation 5,000 5,000 Total Loss 45,000 37,000 3,55,000 Quantity of water utilised Total water Raised 4,00,000 1. 2. Calculate the cost of Water transferred from Water De-mineralization plant to Power Generation. Calculate the total value of abnormal loss of water. Present the information in Annexure to Cost Audit Report Part B, 2-B. 3