The value of normal loss is measured as

1. Normal loss units may still fetch something as scrap. 2. Selling scrap itself costs something, so that cost is netted off. 3. Value of normal loss = scrap realisable value less cost to sell. 4. Where the loss has no realisable value at all, the credit is nil. 5. Adding the selling cost instead of deducting it overstates the credit. _Source: ICAI Cost and Management Accounting Ch10 'Process and Operation Costing', Example 1 and Example 2_