The product of a manufacturing concern passes through two processes A and B and then to finished stock. It is ascertained that in each process normally 5% of the total weight is lost and 10% is scrap from which processes A and B realizes Rs 80 per tonne. The following are the figures relating to both the processes:
|
Process A (Rs) |
Process B (Rs) |
|
|
Materials in tonnes |
1,000 |
70 |
|
Cost of materials in rupees per tonne |
125 |
200 |
|
Wages in rupees |
28,000 |
10,000 |
|
Manufacturing expenses in rupees |
8,000 |
5,250 |
|
Output in tonnes |
830 |
780 |
Prepare process cost accounts showing cost per tonne of each process. There was no stock of work in progress in any process.