An article has to undergo three different processes before it becomes ready for sale. From the following
Question:
An article has to undergo three different processes before it becomes ready for sale. From the following information find out the cost of production per unit of that article if 200 units of articles were manufactured up to 31st Dec.2004.Expenses of 200 units are:
Manufacturing Refining Finishing
Materials 2000 1000 750
Labour 1500 2500 1000
Direct expenses 400 200 300
The indirect expenses for the period amounted to shs.6000.in the factory of which shs.2000 is attributable to this product. This indirect expenses should be allocated to each process on the basis of labor.
Required
(i)Process I a/c
(ii)Process II a/c
(ii)Process III a/c