The product of a company passes through three distinct processes to reach completion. They are A, B and C. From past experience it is ascertained that loss is incurred in each process as follows: Process A—2%, process B—5%, process C—10%.
In each case, the percentage of loss is computed on the number of units entering the process concerned. The loss of each process possesses a scrap value. The loss of processes A and B is sold at Rs 5 per 100 units and that of process C at Rs 20 per 100 units.
|
Process A (Rs) |
Process B (Rs) |
Process C (Rs) |
|
6,000 |
4,000 |
2,000 |
|
8,000 |
6,000 |
3,000 |
|
1,000 |
1,000 |
1,500 |
20,000 units have been issued to process A at a cost of Rs 10,000. 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 is no work in progress in any process. Prepare process accounts. Calculations should be made to the nearest rupee.