Question
Rho Ltd. has the following cost details for its two production processes for March: Particulars Process 1 () Process 2 () Materials 130,000 -- Labour
Rho Ltd. has the following cost details for its two production processes for March:
Particulars | Process 1 (₹) | Process 2 (₹) |
Materials | 130,000 | -- |
Labour | 125,000 | 190,000 |
Overheads | 130,000 | 175,000 |
The output from Process 1 is transferred to Process 2 with a 20% profit on the transfer price. Process 2’s output is transferred to finished goods with a 35% profit. The finished goods are sold for ₹21,00,000.
Requirements:
- Prepare accounts for Process 1 and Process 2.
- Determine the total profit for Rho Ltd.
- Assume no opening or closing work-in-progress.
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
