Reference no: EM132611399

The following given information have been obtained from the Cost accounts of a Factory producing a commodity in the manufacture of which 3 processes are involved with the facts that:

(i) The operations in each separate process are completed daily.

(ii) The value of which units are to be charged to Process "B" and "C" is the cost per Unit of Process "A" plus "B" respectively.

Process                                                            " A "                      " B "                   " C "

COST                                                                     Rs.                        Rs.                     Rs.

Raw material used                                   144,000               ---------     ---------

Direct Wages                                             38,400               72,000          175,500

Machine Expenses                                         21,600               18,000           21,600

Manufacturing overhead                                    12,000              13,500          14,400

UNITS

Production (gross)                                             37,000                  ------             -----

Wastage(Normal Loss)                                        1,000                   1,500                 500

Inventory Jan. 1, 2005                                      --------                    4,000            16,500

Inventory Dec. 31, 2005                                    --------                       1,000            5,500

Required:

Question 1: Prepare Process Cost Accounts showing the cost of the output and the cost per unit at each stage of manufacture.