A material used for building is produced in three grades. The following information is available.
|
Particulars |
Process I – Rs. |
Process II – Rs. |
Process III – Rs. |
|
Raw material used [1000 tons] |
1, 00, 000 |
— |
— |
|
Wages |
87, 500 |
39, 500 |
10, 710 |
|
Weight lost [% of input] |
5% |
10% |
20% |
|
Scrap [sales price of Rs.50 per ton] |
50 tons |
30 tons |
51 tons |
|
Sale price per ton of finished goods |
Rs.350 |
Rs.500 |
Rs.800 |
Management expenses were Rs.17,500 and selling expenses Rs.10,000. 2/3rd of output of process and 50% of the output of process II is passed to the next process and remaining is sold. The entire output of process III is sold. Prepare Process Accounts and Statement of Profit.