Problem:
Roy & Johnson (P) Ltd gives the following particulars relating to Process A in its plant for the month of December 2009:
WIP (opening balance) on 1 December 2009 - 500 units
|
Cost
|
|
|
Material
|
4,800
|
|
Labour
|
3,200
|
|
Overheads
|
6,400
|
|
14,400
|
Units introduced during the month - 19,500 units Processing costs incurred during the month:
|
|
|
Materials
|
1,86,200
|
|
Labour
|
72,000
|
|
Overheads
|
1,06,400
|
|
3,64,600
|
Output: Units transferred to Process B: 18,200 units
Units scrapped (completely processed): 1,400 units
WIP (closing balance) = 400 units
Degree of completion: Materials - 100%; Labour and overhead 50%
Normal loss in processing is 5% of the total input and the normal scrapped units fetch Re 1 each.
Prepare the following statements for Process A for December 2009
1. Statement of equivalent production
2. Statement of cost
3. Statement of evaluation and
4. Process "A" account.