A product, which uses 100 tons as input per month passes through two Processes. The details of cost in Process 1 for April 2003 are:

The total loss in Process 1 is 2% of input, and the scrap is 8% of input with a value of Rs. 12,000 per ton. The material to Process 2 is transferred at cost. The Process direct labour cost at Process 2 is Rs. 9,000 per ton of input. The overhead is 60% of direct labour cost. The scrap at Process-2 is 20% of input with a value of Rs. 12,000 per ton. Draw up a cost sheet to present the manufacturing cost of the product showing clearly the cost of scrap and waste at each stage of manufacturing.

Transcribed Image Text:

Process 1 Direct material cost Direct labour cost Overhead Cost per tonne Rs. 26,100 7,800 13,500