Problem-1

The Northern Jute Mills Ltd. Manufactures gunny bags which pass through three consecutive process. The following cost information is obtained for the month of January.

Process-1Process-2Process-3 Tk.Tk.Tk.Materials45000 Labor210004200018000

1, 00,000 gunny bags were completed during the month. Indirect expenses amounting to Tk. 27,000 were allocated on the basis of direct labor cost. There were no opening or closing inventories.

Prepare the Process Accounts showing cost per unit of goods produced in each process.