A particular brand of scent passed through three important processes. During the weakened on 15 January 2010, 600 bottles were produced. The cost books show the following information:
|
Process A Rs. |
Process B Rs. |
Process C Rs. |
|
|
Materials |
4,000 |
2,000 |
1,500 |
|
Labour |
3,000 |
2,500 |
2,300 |
|
Direct expenses |
600 |
200 |
500 |
|
Cost of bottles |
– |
2,030 |
— |
|
Cost of corks |
– |
— |
325 |
The indirect expenses for the period were Rs. 1,600 (indirect expenses are charged on labour basis).
The by-products were sold for Rs. 240 (Process B)
The residue was sold for Rs. 125.50 (Process C)
Prepare the accounts in respect of each of the processes, showing its cost and cost of production of the finished product per bottle.