A product passes through three Processes A, B and C. 10,000 units a cost of Rs. 1.10
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A product passes through three Processes A, B and C. 10,000 units a cost of Rs. 1.10 were issued to Process-A. The other direct expenses were as follows:
The wastage of Process-A was 5% and in Process-B 4%. The wastage of Process-A was sold at Re. 0.25 per unit and that of B at Re. 0.50 per unit and that of C at Re. 1.00 per unit. The overhead charges were 160% of direct labour. The final product was sold at Rs. 10 per unit fetching a profit of 20% on sales, find out the percentage of wastage in Process-C.
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Lets break down the calculations step by step Calculate the total cost incurred in each process ProcessA Total cost Cost of materials Direct labor Dir...View the full answer
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