Question:
Zap is produced refining chemicals through a process which involves a process loss of 15%. During a period, 8,000 grams of chemicals which cost 80 paise per gram were introduced into the process which yielded 6,000 gms of Zap. The wages looked to the process amounted to Rs. 1,200 and overheads apportioned there amounted to Rs. 1,140. The waste from process was sold for 20 paise per gram.
1. Prepare a process account (and also if necessary any other relevant account) to show the result of producing Zap during the period.
2. If the Zap produced was 7,000 gms (instead of 6,000 grams), what would be the process account?