The following information is given in respect of Process No.3 for the month of January 2001.
|
Opening stock: 2000 units made of, |
|
|
Direct Material I: |
Rs.12, 350 |
|
Direct Material II: |
Rs.13, 200 |
|
Direct Labor: |
Rs.17, 500 |
|
Overheads: |
Rs.11, 000 |
Transferred from Process No.2: 20, 000 units @ Rs.6 per unit
Transferred to Process No.4: 17, 000 units
Expenditure incurred in Process No.3:
Direct Materials: Rs.30, 000
Direct Labor: Rs.60, 000
Overheads: Rs.60, 000
Scrap: 1, 000 units: Degree of completion: Direct Materials. 100%, Direct Labor: 60%, Overheads. 40%, normal loss 10% of production
Scrapped units realized @ Rs. 4 per unit.
Closing stock: 4,000 units, degree of completion: Direct Materials 80%, Direct Labor 60% and overheads 40%
Prepare Process 3 A/c using average price method, along with necessary supporting statements.