Question

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
tonne and Rs. 200 per tonne respectively. The following are the figures relating to both the
processes:
Process A
Process B
Materials in tonnes
1.000
70
Cost of materials in rupees per tonne
125
200
Wages in rupees
28,000
10,000
Manufacturing expenses in rupees
8,000
5,250
Output in tonnes
830
780
Prepare process accounts showing cost per tonne of each process. Also prepare abnormal
loss/gain account
​

Answer 1

Explanation:

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

tonne and Rs. 200 per tonne respectively. The following are the figures relating to both the

processes:

Process A

Process B

Materials in tonnes

1.000

70

Cost of materials in rupees per tonne

125

200

Wages in rupees

28,000

10,000

Manufacturing expenses in rupees

8,000

5,250

Output in tonnes

830

780

Prepare process accounts showing cost per tonne of each process. Also prepare abnormal

loss/gain account