Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 24 Sep 2017 My Price 8.00

Management expenses

A product passes through three processes A, B and C. The details of expenses incurred on the three processes during the year 1992 are as follows:

 

Process A

Process B

Process C

Units issued/introduced at cost per unit Rs 100

10000

    
 

(Rs)

(Rs)

(Rs)

Sundry materials

10000

15,000

5,000

Labour

30000

80000

65,000

Direct expenses

6,000

18,150

27,200

Selling price per unit of output

120

165

250

Management expenses during the year were Rs 80,000 and selling expenses were Rs 50,000. These are not allocable to the processes. The actual outputs of processes A, B and C were 9,300 units; 5,400 units; and 2,100 units, respectively. Two-thirds of the output of process A and one half of the output of process B were passed on to the next process and the balance was sold. The entire output of process C was sold. The normal losses of the three processes, calculated on the inputs of processes, were as follows: process A—5%, process B—15% and process C—20%. The loss of units in process A was sold at Rs 2 per unit, that of B at Rs 5 per unit and that of process C at Rs 10 per unit. Prepare process accounts and profit and loss accounts.

Answers

Maurice Tutor
(5)
Status NEW Posted 24 Sep 2017 11:09 PM My Price 8.00

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