In a Factory the Product Passes Through Two Processes, a and B. a Loss of 5% is Etlowed in Process a and 2% in - Cost Accounting(Financial Accounting and Auditing 10)
In a factory the product passes through two processes, A and B. A loss of 5% is etlowed in Process A and 2% in Process B, nothing being realised by disposal of wastage. During April 2018, 10,000 units of material costing~ 6/- per unit were introduced in process A. The other costs are as follows.
Process A (Rs.)
Process B (Rs.)
The output was 9,300 units from Process A. 9,200 units were produced by Process B, which were transferred to the finished stock. 8,000 units of the finished product was sold at Rs 15/- per unit the selling and distribution expenses were Rs. 2/- per unit. Prepare (a) Process Accounts, (b) Statement of Profit and Loss for the month April, 2018; assuming there were no opening stock of any type.