management Accounting

Example 1. The manufacturing company has two process in its manufacturing factory. Output of process I becomes the input for process II and process Il production is ready for sale. Expected loss in each process is expected to be at 10% of input material of each process and scrap value is Rs. 2 per unit. Relevant information for Period Y is given below. Process 11 Units Rs Process 1 Units Rs 2,000 8,100.00 1,750 1750 Input materials Transferred to Process II Material from Process Added materials Labour & overheads Output to finish goods 1,900.00 22,000.00 10,000.00 1600 Prepare the following accounts 1 Process 2 Process II 3 Normal Loss/Scrap 4 Abnormal Loss 5 Abnormal Gain