Product B is obtained after it passes through three distinct processes. The following information is obtained from the accounts for the week ending on 31st March 2006
|
Particulars |
Total Amount |
Process I |
Process II |
Process III |
|
Direct material |
Rs. 7,542 |
Rs. 2,600 |
Rs. 1,980 |
Rs. 2,962 |
|
Direct wages |
Rs. 9,000 |
Rs. 2,000 |
Rs. 3,000 |
Rs. 4,000 |
|
Production overheads |
Rs.9,000 |
|
|
|
1,000 units @ Rs. 3 each were introduced in Process I. There was no stock of materials or work in progress at the beginning or at the end of the period. The output of each process passes direct to next process and finally to finished store. Production overheads are recovered on 100% of direct wages. The following additional data are obtained.
|
Particulars |
Output during the week |
% of normal loss to input |
Value of scrap per unit |
|
Process I |
950 units |
5% |
Rs. 2 |
|
Process II |
840 units |
10% |
Rs. 4 |
|
Process III |
750 units |
15% |
Rs. 5 |
Prepare Process Cost Accounts and Abnormal Loss and Abnormal Gain Account.