The following are the details in respect of Process X and Process Y of a processing factory.
|
Particulars |
Process X Rs. |
Process Y Rs. |
|
Material |
10, 000 |
|
|
Labor |
10, 000 |
14, 000 |
|
Overheads |
4, 000 |
10, 000 |
The output of Process X is transferred to Process Y at a price calculated to give a profit of 20% on the transfer price and the output of Process Y is charged to finished stock at a profit of 25% on the transfer price. The finished department realized Rs.1, 00, 000 for the finished goods received from Process Y.You are required to prepare Process Account and show the total profits assuming that there was no opening and no closing work in progress.