Xenon Chemicals Ltd. manufacture and sell their chemicals produced by consecutive processes:

The products of these processes are dealt with as under:

	Process I	Process II	Process III
Transferred to next Process Transferred to warehouse for sale	66$\frac{2}{3}$% 33$\frac{1}{3}$%	60% 40%	— 100%

In each process 4% of the weight put is lost and 6% is scrap which from process I realised 3 per ton, from Process II 5 per ton and from Process III 6 per ton.

The following particulars relate to a period:

	Process I	Process II	Process III
Raw materials used in tons Rate per ton Wages and other expenses	1,400 10 5,152	160 16 3,140	1,260 7 2,898

Prepare Process accounts showing cost per ton of each product.

Solution Will update soon

A product which uses 100 tonnes as input per month passes through two processes. The details of cost in Process I for a period are:

Process I		Cost per tonne
Direct material cost Direct labour cost Overhead	... ... ...	26,100 7,800 13,500

The total loss in Process I is 2% of input, and the scrap is 8% of input with a value of 12,000 per tonne.

The material is transferred to Process II at cost. The process direct labour cost at Process II is 9,000 per tonne of input. The overhead is 60% of direct labor cost. The scrap at Process II is at 20% of input with a value of 12,000 per tonne.

Draw up a cost sheet to present the manufacturing cost of the product showing clearly the cost of scrap and waste at each stage of manufacture.

Solution Will update soon