Question: Question In a factory the product passes through two process, A and B. A loss of 5% is allowed in process A and 2 %
Question In a factory the product passes through two process, A and B. A loss of 5% is allowed in process A and 2 % in process B, nothing being realized by disposal of wastage. During April 2003. 10,000 units of material costing OMR 6 per unit were introduced in process A. The other costs are as follows: Process-A OMR Materials - 10,000 Labour - 6,000 Overheads - 5.000 Process -B Material -6,500 Labour - 6,000 Overheads The output was 9,300 units from process A, 9.200 units were produced by process B, which were transferred to the warehouse. 8,000 units of the finished product were sold @ OMR 15 per unit. Prepare : 1. Process A account 2. Process B account 3. Abnormal loss/ gain account - 5,500
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