Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In a soap manufacturing factory, a soap passes through three processesA,B and C. The normal loss of each process is as follows: Process A -

In a soap manufacturing factory, a soap passes through three processesA,B and

C. The normal loss of each process is as follows:

Process A - 3% Process B - 5% Process C - 8%

Loss of process A was sold at 25 paise per unit, that of B at 50 paise per unit and that of C at

1.00 per unit.10,000 units were introduced to process A at Rs.1.00per unit. The other expenses were as follows:

Process (Rs)
A B C
Materials 1,000 1,500 500
Labour 5,000 8,000 6,500
Direct Expenses 1,050 1,188 2,009
Actual Output(in units) 9,500 9,100 8,100

Assuming that there was no opening or closing stocks. Out of 8100 finished units, 7500 units are sold at Rs. 7.5 per unit and selling and distribution expenses are Rs. 1.5 per unit. Find below

Abnormal loss in process A
Abnormal gain in process B
Abnormal loss in Process C
Value of finished goods in process C
Net profit/Loss

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

13th Edition

9780470374948, 470423684, 470374942, 978-0470423684

More Books

Students also viewed these Accounting questions

Question

Describe internal control procedures for cash received by mail.

Answered: 1 week ago

Question

' What parts of the organization seem central to the organization?

Answered: 1 week ago

Question

Azure Analytics is a suite made up of which three tools?

Answered: 1 week ago