SR Ltd. produces Product 'Z' through two distinct processes Process I and Process II. On completion,...

 

Transcribed Image Text:

SR Ltd. produces Product 'Z' through two distinct processes Process I and Process II. On completion, it is transferred to finished stock. Following information is given for a particular month: Particulars Process I Process II Raw material used 7,500 units Raw material cost per unit Rs.60 Transfer to next process/finished stock 7050 units 6570 units Normal Loss ( on input) 5% 10% Direct Wages Rs.1,40,000 Rs.1,20,000 Direct Expenses Manufacturing Overheads Realizable value of scrap per unit 60% of direct Wages 65 % of direct Wages 20% of direct Wages Rs. 34,650 Rs.29 Rs.40 There was no opening or closing stock of work in progress. You are required to: (i) Prepare process accounts, normal wastage account, abnormal wastage account and abnormal gain account if there is abnormal gain. (ii) 6,000 units of finished stock were sold at a profit of 20% on cost. Find the selling price. SR Ltd. produces Product 'Z' through two distinct processes Process I and Process II. On completion, it is transferred to finished stock. Following information is given for a particular month: Particulars Process I Process II Raw material used 7,500 units Raw material cost per unit Rs.60 Transfer to next process/finished stock 7050 units 6570 units Normal Loss ( on input) 5% 10% Direct Wages Rs.1,40,000 Rs.1,20,000 Direct Expenses Manufacturing Overheads Realizable value of scrap per unit 60% of direct Wages 65 % of direct Wages 20% of direct Wages Rs. 34,650 Rs.29 Rs.40 There was no opening or closing stock of work in progress. You are required to: (i) Prepare process accounts, normal wastage account, abnormal wastage account and abnormal gain account if there is abnormal gain. (ii) 6,000 units of finished stock were sold at a profit of 20% on cost. Find the selling price.

Answer rating: 100% (QA)

Part 1 Proces 1 Ac Particulars Unit Amount Particulars Unit Amount To raw material 7500 450000 By normal loss 5 375 To direct wages 140000 By sale of ... View the full answer