The finished product of a factory has to pass through three Processes A, B and C. The
Question:
The finished product of a factory has to pass through three Processes A, B and C. The normal wastage of each process is 2% in A, 5% in B and 10% in C. The percentage of waste is computed on the number of units entering each process.
The scrap value of wastage of Process A, B and C are Rs. 10, Rs. 40, Rs. 20 per 100 units respectively. The output of each process is transferred to the next process and the finished products are transferred from Process C into stock. The following further information is obtained:
2,000 units were put into Process A at a cost of Rs. 16,000. The output of each process has been A-19,600 units, B-18,400 units and C-16,700 units.
There was no stock of work-in-progress in any process.
Prepare the process accounts.
Step by Step Answer:
To prepare the Process Accounts for Processes A B and C we need to calculate the cost wastage scrap value and output for each process Well start with Process A then move to Process B and finally Proce...View the full answer
