In a certain process, material is mixed and cooked in batches of 1,000 lbs each. Cooking results in 10 percent

Question:

In a certain process, material is mixed and cooked in batches of 1,000 lbs each. Cooking results in 10 percent loss of weight of the mixture. Since the cooking requires considerable skill and constant watching, there is generally a further loss for spoilage which is not discovered until processing has been completed. Also, past experience shows that normally two batches out of every ten started in the process are spoiled in this way.

In a given month, the production records show: 

(i). Production started in the process  50 batches of 1,000 lbs each. 

(ii). Production completed and transferred to finished goods is 34,200 lbs. 

(iii). There is no inventory of work-in-process at the beginning or end of the month. 

Costs recorded during the month amounted to Rs. 45,000. Prepare the Process Account for the month and determine the cost per pound of finished product.

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Related Book For  answer-question

Cost Accounting

ISBN: 9780070221628

4th Edition

Authors: Jawahar Lal, Seema Srivastava

Question Details
Chapter # 11- PROCESS COSTING,,
Section: Problem
Problem: 4
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: September 05, 2023 13:15:54