Question
Omicron Ltd. reports the following costs for its two production processes for May: Particulars Process M () Process N () Materials 120,000 -- Labour 105,000
Omicron Ltd. reports the following costs for its two production processes for May:
Particulars | Process M (₹) | Process N (₹) |
Materials | 120,000 | -- |
Labour | 105,000 | 170,000 |
Overheads | 110,000 | 155,000 |
The output from Process M is transferred to Process N with a 15% profit. The output from Process N is transferred to finished goods with a 35% profit. The finished goods are sold for ₹19,00,000.
Requirements:
- Prepare the accounts for Process M and Process N.
- Calculate the total profit.
- Assume no opening or closing work-in-progress.
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan
17th Edition
0135628474, 9780135628478
