Question 3 (This question provides evidence for CILO 3) (25 Marks)

You were eventually hired as an accounting clerk and the following tasks were given to you: A product passes through three processes namely Grinding, Mixing, and Packing. 2000 kg at BD 1 per kg were issued to Grinding process.

Details	Grinding process (BD)	Mixing process (BD)	Packing process (BD)
Sundry material	200	300	280
Direct labour	1000	1600	1300
Direct expenses	200	240	320

The wastage of grinding process was 5%, mixing process 4%, and packing process was 64 units. The wastage of grinding process was sold at BD 0.2 per kg, that of mixing process at BD 0.5 and packing process at BD 3 per unit. The overhead charges were 150 % of direct labour cost. The final product was sold at BD 20 per kg.

You are required to prepare the three process accounts and finished goods account showing:

• The cost of each process
• The sales proceeds
• The profit or loss on sales

Grinding process- a/c (7.5 marks)

Details	Units	Amount BD	Details	Units	Amount BD

Mixing process - a/c (7.5 marks)

Details	Units	Amount BD	Details	Units	Amount BD

Packing process - a/c (7.5 marks)

Details	Units	Amount BD	Details	Units	Amount BD

Show your calculations of the profit/loss below: (2.5 marks)

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