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A Product passes through two distinct processes, A and B. From the following information you are required to write the process accounts, abnormal loss/gain accounts.
Units Issued---Process A 10,000 units at Rs. 10each.
In a factory the product passes through two processes A and B. A loss of 5% is allowed in Process A and 2% in Process B, nothing being realized by disposal of wastage.
During April, 2005, 10,000 units of material costing Rs. 6 per unit were introduced in Process A. The other costs are :
The output was 9,300 units from Process A. 9,200 units were produced by Process B, which were transferred to the warehouse.
8,000 units of the finished product was sold @ Rs. 15 per unit. The selling and distribution expenses were Rs. 2 per unit.
Prepare (i) Process Accounts; and (ii) A statement of profit or loss of the firm for April 2005, assuming there were no opening stocks of any type.
The product of a manufacturing concern passes through two processes A and B and then to finished stock. It is ascertained that in each process normally 5% of the total weight is lost and 10% is scrap which from Processes A and B realizes Rs. 80 per ton and Rs. 200 per ton respectively.
The following are the figures relating to both the processes:
Prepare Process Cost Accounts showing cost per ton of each process. There was no stock or work-in-progress in any process
Make out the necessary accounts from the following details:
There was no opening or closing stock or work-in-progress. Final output from Process B was 17,000 units.
Product 'Z' is obtained after it passes through three distinct processes. The following information is obtained from the accounts for the month ending March 31, 2005:
1,000 units at Rs. 3 each were introduced to Process I. There was no stock of material or work-in-progress at the beginning or end of the period. The output of each process passes direct to the next process and finally to finished stores. Production overhead is recovered on 100 percent of direct wages. The following additional data are obtained:
Prepare process cost accounts and abnormal gain or loss accounts.
A product passes through three processes to completion in January, 1988, the cost of production was as given below:
1,000 units were issued to Process I @ Rs. 5 each.
Prepare the necessary accounts.
A product passes through three process viz., Process I. Process II. and Process III. The normal wastage of each process is:
Process I: 3%; Process II: 6%; and Process III: 10%.
The percentage of normal wastage in each case is computed on the basis of the number of units entering the process concerned. The wastage of Process I is sold @ 25 paise per unit, that of Process II is sold @ 50 paise per unit and that of Process III is sold @ Re. 1 per unit, The other expenses are:
The output of each process has been as follows:
Prepare process cost accounts and abnormal wastage and abnormal effective accounts.
The product of company passes through three distinct processes to completion. They are known as A, B and C. From past experience it is ascertained that loss is incurred in each process as Process A : 2%, Process B: 5% Process C : 10%
In each case the percentage of loss is computed on the number of units entering the process concerned.
The loss of each process possesses a scrap value. The loss of processes A and B is sold at Rs. 5 per 100 units and that of process C at Rs. 20 per 100 units. The output of each process passes immediately to the next process and the finished units are passed from process C into stock
20,000 units have been issued to process A at a cost of Rs. 10,000. The output of each process has been as under:
Process A : 19,500; Process B: 18,800; Process C : 16,000
There is no work-in-progress in any process. Prepare Process accounts, Calculations should be made to the nearest rupee.
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