Question:
The product of a manufacturing concern passes through two processes A and B and then to finished stock. It is ascertained that in each process normally 5% of the total weight is lost and 10% is scrap from which processes A and B realizes Rs 80 per tonne. The following are the figures relating to both the processes:
|
Process A (Rs)
|
Process B (Rs)
|
|
Materials in tonnes
|
1,000
|
70
|
|
Cost of materials in rupees per tonne
|
125
|
200
|
|
Wages in rupees
|
28,000
|
10,000
|
|
Manufacturing expenses in rupees
|
8,000
|
5,250
|
|
Output in tonnes
|
830
|
780
|
Prepare process cost accounts showing cost per tonne of each process. There was no stock of work-in-progress in any process.