Task 1. Identify a Company in Oman that should adopt process costing method to find out the cost of production. Explain the characteristics of process costing in relation to the chosen company.

Task 2. A product passes through three processes A, B and C. 10,000 units at a cost of OMR 1.10 were issued to Process A. The other direct expenses were as follows:

PROCESS-A PROCESS-B PROCESS-C

Sundry materials 1,500 1,500 1,500

Direct labour 4,500 8,000 6,500

Direct expenses 1,000 1,000 1,503

The wastage of process: A was 5% and in process B 4% .The wastage of process A was sold at OMR 0.25 per unit and that of B at OMR 0.50 per unit and that of C, at OMR 1.00. The overhead charges were 160% of direct labour. The final product was sold at OMR 10 per unit fetching a profit of 20% on costs. Find out the percentage of wastage in Process C