Parul Ltd. produces patent materials used in building construction, the manufacture of which
involves three processes. The material is produced in three consecutive grades namely soft,
medium and hard. Figures relating to production for the first six months of 2020 are as
follows:
Process I Process II Process III
Raw materialintroduced (tons) 1,000
Cost of material per ton (Rs) Rs.200
Manufacturing wages and Expenses (Rs) 72,500 40,800 10,710
Weight lost ( Normal) 5% 10% 20%
Scrap sold at Rs.50 per ton 50 tons 30 tons 51 tons
Transferred to the next process Two-third of
output
One-half of
output
Nil
Transferred to warehouse for sale One-third of
output
One-half of
output
100%
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