Question:
The product of a company passes through three distinct processes to reach completion. From past experience it is ascertained that wastage is incurred in each process as under process A-2%, process B-5% and process C-10%. The wastage of processes A and B is sold at Rs 10 per 100 units and that of process C at Rs 80 per 100 units. Following is information regarding the production of March 1994:
|
Process A (Rs)
|
Process B (Rs)
|
Process C (Rs)
|
|
Materials
|
12,000
|
8,000
|
4,000
|
|
Direct labour
|
16,000
|
12,000
|
6,000
|
|
Machine expenses
|
2,000
|
2,000
|
3,000
|
|
Other factory expenses
|
3,500
|
3,800
|
4,200
|
20,000 units have been issued to process A at a cost of Rs 20,000. The output of each process is as under process A-19,500 units; process B-18,800 units; and process C-16,000 units. There was no stock or work-in-progress in any process in the beginning and the end of March. Prepare process account.