A product passes through three processes A, B and C. The
normal wastage of each process is as follows: Process A - 3%, Process B - 5% and Process C - 8%. Wastage of Process A was sold at Rs. 0.25 per unit, of Process B at Rs. 0.50 per unit, and that of Process C at Rs. 1 per unit. 10,000 units were issued to
Process A in the beginning of October 2017 at the cost of R. 1 per unit. The other expenses were as follows:
|Process A(Rs.)||Process B(Rs.)||Process C(Rs.)|
|Actual output||9,500 units||9,100 units||8,100 unit|
Prepare the Process Accounts, assuming that there were no opening or closing stocks. Also give the Abnormal Wastage and Abnormal Gain Accounts.
An article passes through 3 processes of manufacture From the following figures show the cost of each of the three processes during the month of March, 2018:
|Material used (Rs.)||15,000||5,000||2,000|
The indirect expenses of Rs. 8,500 shall be apportioned on the basis of Labour Cost. No account need be taken of stocks in hand and work-in-progress at the beginning and close of the month. The articles produced during the month were 240.
A product is obtained after passing it through three process. The following information is collected for March, 2018 :
|Direct Materials (Rs.)||10,400||7,920||11,848|
|Direct Wages (Rs.)||8,000||12,000||16,000|
|Value of Scrap per Unit (Rs.)||8||16||20|
Additional Information :
2,000 Units@ Rs. 12 was introduced in Process I. There was no stock of materials or W.l.P. at the beginning or at the end of that month. The Production Overhead was Rs. 36,000 for that month.
Prepare Process Accounts.
'Uptodate Ltd.' processes a patent material shows the following cost records for manufacturing 400 units of Product A in a process :
The standard normal wastage in production is 10%, and it can be sold in the market at Rs. 30 per unit. The actual production is 300 Units due to gross carelessness of the workers.
Show : (a) Process A/c; (b) Abnormal Wastage A/c.