prepare process cost accounts showing cost per tonne of each process there was no st 620858
The product of a manufacturing concern passes through two processes A and B and then to the finished stock. It is ascertained that in each process normally 5% of the total weight is lost and 10% is scrap which from Process A and B realized Rs. 80 per tonne and Rs. 200 per tonne, respectively.
The following figures relate to both processes:
Process A |
Process B |
|
Materials (in tonnes) |
1,000 |
|
Cost of materials (Rs. per tonne) |
125 |
70 |
Wages (Rs.) |
28,000 |
200 |
Manufacturing expenses (Rs.) |
8,000 |
10,000 |
Output (in tonnes) |
830 |
5,250 |
780 |
Prepare process cost accounts showing cost per tonne of each process. There was no stock or WIP in any process.