Practice Problem 6 Product Z passes through three processes - A, B and C. The expenses incurred in the three processes during the year 2007 were as under: Particulars Processes A B Units of input issued Details 1000 RO RO RO Cost per unit Direct Materials 50 1600 3315 3220 Direct labor 2600 8000 6392 Sale price of output (per unit) 70 100 200 The normal loss of the three processes, calculated on the input of every process was A- 5%, B - 15% and C- 20%. The loss of process A was sold at 1RO per unit, and that of Process B at 3 RO and C at 6RO per unit. Two-third of the output of Process A and one- half of the output of Process B was passed to the next process and balance was sold. The entire output of Process C was sold. Prepare three process accounts.
Practice Problem 6 Product Z passes through three processes - A, B and C. The expenses incurred in the three processes during the year 2007 were as under: Particulars Processes A B Units of input issued Details 1000 RO RO RO Cost per unit Direct Materials 50 1600 3315 3220 Direct labor 2600 8000 6392 Sale price of output (per unit) 70 100 200 The normal loss of the three processes, calculated on the input of every process was A- 5%, B - 15% and C- 20%. The loss of process A was sold at 1RO per unit, and that of Process B at 3 RO and C at 6RO per unit. Two-third of the output of Process A and one- half of the output of Process B was passed to the next process and balance was sold. The entire output of Process C was sold. Prepare three process accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Practice Problem 6
Product Z passes through three processes - A, B and C. The expenses incurred in the
three processes during the year 2007 were as under:
Particulars
Processes
A
B
Units of input issued
Details
1000
RO
RO
RO
Cost per unit
50
Direct Materials
1600
3315
3220
Direct labor
2600
8000
6392
Sale price of output (per unit)
70
100
200
The normal loss of the three processes, calculated on the input of every process was A-
5%, B – 15% and C- 20%. The loss of process A was sold at 1RO per unit, and that of
Process B at 3 RO and C at 6RO per unit. Two-third of the output of Process A and one-
half of the output of Process B was passed to the next process and balance was sold. The
entire output of Process C was sold. Prepare three process accounts.
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