500 tonnes of raw material are used for producing a commodity which passes through t 619671
Model: Normal loss with scrap value
500 tonnes of raw material are used for producing a commodity which passes through two processes. The costs are as follows:
|
Process I Rs. |
Process II Rs. |
|
|
Materials |
10,000 |
– |
|
Labour |
5,000 |
2,500 |
|
Work expenses |
2,000 |
1,000 |
10% of the material is wasted in the process. The wastage is normal. The scrap realized is Rs. 300. You are required to show Process No. I. Account.