Question:
A product is produced in three consecutive processes. The details are shown as follows:
|
Process I
|
Process II
|
Process III
|
|
Raw materials used
|
2,CO,C00
|
-
|
-
|
|
1,CCO tames (Rs.)
Wages
|
87,500
|
39,500
|
10,710
|
|
Weight lost
|
5%
|
10%
|
20%
|
|
(% of input of the process)
Scrap (sale price:
|
50 tonnes
|
30 tonnes
|
51 tonnes
|
|
Rs. 50/tonne)
Sale price per tonne (Rs.)
|
350
|
5C0
|
800
|
Management expenses were Rs. 17,500 and selling expenses Rs. 10,000. Two-thirds of the output of Process I and one-half of the output of Process II are passed on to the next process and the balances are sold. The entire output of Process III is sold.
Prepare the three process accounts and a statement of profit.