The product of a company passes through three distinct processes to reach completion. From past experience it is ascertained that wastage is incurred in each process as under process A—2%, process B—5% and process C—10%. The wastage of processes A and B is sold at Rs 10 per 100 units and that of process C at Rs 80 per 100 units. Following is information regarding the production of March 1994:
|
Process A (Rs) |
Process B (Rs) |
Process C (Rs) |
|
|
Materials |
12,000 |
8,000 |
4,000 |
|
Direct labour |
16,000 |
12,000 |
6,000 |
|
Machine expenses |
2,000 |
2,000 |
3,000 |
|
Other factory expenses |
3,500 |
3,800 |
4,200 |
20,000 units have been issued to process A at a cost of Rs 20,000. The output of each process is as under process A—19,500 units; process B—18,800 units; and process C—16,000 units. There was no stock or work in progress in any process in the beginning and the end of March. Prepare process account.