the output is sold so as to show a profit ofon the selling price the rest of the out 619675

Model: Normal loss with realized value + selling price determination

At the end of Process A, which was carried on in a factory during the week that ended on 30 June 2009, the number of units produced was 1,750 excluding 50 units damaged at the very end of the process. The damaged units realized Rs. 5 per unit as the scrap. Generally, a normal wastage of 10% occurs during the process and so the wastage realized was Rs. 3 per unit.

A unit of raw material costs Rs. 6. The other expenses of the week were:

50% of the output is sold so as to show a profit ofon the selling price. The rest of the output is transferred to Process “B”. Prepare Process “A” Account.