Question:
A product passes through three processes A, B and C. To process A, 10,000 units at Re 1 per unit were issued. The other direct expenses are as follows:
|
Process A (Rs)
|
Process 8 (Rs)
|
Process C (Rs)
|
|
Sundry materials
|
1,000
|
1,500
|
1480
|
|
Direct labour
|
5,000
|
8,000
|
6,500
|
|
Direct expenses
|
1,050
|
1,188
|
1,605
|
The wastage of process A was 5%, process B 4% and process C 5%. The wastage of process A was sold at Re 0.25 per unit, that of B at Re 0.50 per unit and that of C at Re 1 per unit. The overhead charges were 168% of direct labour. The final product was sold at Rs 10.0 per unit, fetching a profit of 20% on sale. Prepare process accounts and finished goods account.