The finished product of a manufacturing company passes through three Processes, viz., I, II and III. The

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The finished product of a manufacturing company passes through three Processes, viz., I, II and III. The normal wastage in each process is 5%, 7% and 10% for the Processes I, II and III respectively (calculated with reference to the number of units fed into each process). The scrap generated out of wastage has a sale value of 70 paise per unit, 80 paise per unit and Re. 1 per unit in the Process I, II and III respectively. The output of each process is transferred to the next Process and the finished output emerges from the process III and transferred to stock. There was no stock of work-in-progress in any process in a particular month. The details of cost data for the month are given below:

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Cost Accounting

ISBN: 9780070221628

4th Edition

Authors: Jawahar Lal, Seema Srivastava

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