Maridadi Ltd. Produces a product that passes through two distinct processes. The following information was obtained from the accounts of the company for the month...

      

Maridadi Ltd. Produces a product that passes through two distinct processes. The following information was obtained from the accounts of the company for the month of July 2022.
Particulars Process A Process B
Sh. Sh.
Direct materials 78,000 59,400
Direct wages 60,000 90,000
Production overheads 60,000 90,000

At the beginning of the month of July 2022, 3,000 units of sh.30 each were introduced to process A. There were no stock of materials or work-in-progress.
The output of each process passes directly to the next process and finally to the finished goods stock account.

The following additional data was obtained:
Process Output Percentage of normal loss to input Scrap value of normal loss per unit
Sh.
Process A 2,850 5% 20
Process B 2,520 10% 40

Required:
(i) Process A account.
(ii) Process B account.

  

Answers

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francis1897 answered the question on November 14, 2022 at 08:27

Next: Outline four limitations of process costing.
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