Question

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:

Particulars	Processes-1	Process-2	Process-3
Material used (Rs.)	15,000	5,000	2,000
Labour(Rs.)	8,000	20,000	6,000
Direct Expenses(Rs.)	2,600	7,200	2,500

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.

Answer 1

Books of a Manufacturing Company

Dr.

Process - 1 A/c

Cr.

(Units Produced= 240)

Particulars	Total Cost (Rs.)	Particulars	Total Cost (Rs.)
To Direct Material	15,000	By Process - 2 A/c	27,600
To Labour	8,000
To Direct Expenses	2,600
To Indirect Expenses (Rs. 8,500 x 8/34)	2,000
	27,600		27,600

Dr.

Process - 2 A/c

Cr.

(Units Produced= 240)

Particulars	Total Cost (Rs.)	Particulars	Total Cost (Rs.)
To Process - 1 A/c	27,600	By Process - 3 A/c	64,800
To Material	5,000
To Labour	20,000
To Direct Expenses	7,200
To Indirect Expenses (Rs. 8,500 x 20/34)	5,000
	64,800		64,800

Dr.

Process - 3 A/c

Cr.

(Units Produced = 240)

Particulars	Total Cost (Rs.)	Particulars	Total Cost (Rs.)
To Process - 2 A/c	64,800	By Finished Stock A/c	76,800
To Material	2,000
To Labour	6,000
To Direct Expenses	2,500
To Indirect Expenses (Rs. 8,500 x 6/34)	1,500
	76,800		76,800