A product passes through three processes A, B and C. To process A, 10,000 units at Re 1 per unit were issued. The other direct expenses are as follows:
|
Process A (Rs) |
Process 8 (Rs) |
Process C (Rs) |
|
|
Sundry materials |
1,000 |
1,500 |
1480 |
|
Direct labour |
5,000 |
8,000 |
6,500 |
|
Direct expenses |
1,050 |
1,188 |
1,605 |
The wastage of process A was 5%, process B 4% and process C 5%. The wastage of process A was sold at Re 0.25 per unit, that of B at Re 0.50 per unit and that of C at Re 1 per unit. The overhead charges were 168% of direct labour. The final product was sold at Rs 10.0 per unit, fetching a profit of 20% on sale. Prepare process accounts and finished goods account.