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Subhan Allah Foods Limited (SFL) produces and sells chicken nuggets. Boneless chicken is minced, spiced up, cut to standard size and semi-cooked in the cooking
Subhan Allah Foods Limited (SFL) produces and sells chicken nuggets. Boneless chicken is minced, spiced up, cut to standard size and semi-cooked in the cooking department. Semi-cooked pieces are then frozen and packed for shipping in the finishing department. Inspection is carried out when the process in the cooking department is 80% complete. Normal loss is 5% of input and comprises of: 2% weight loss due to cooking; and 3% rejection of nuggets. Overheads are applied at the rate of 120% of direct labour cost. Following information pertains to cooking department for the month of June 2019: Kg. Material Labour Rs. In '000 ---- 6,260 1,288 50,000 20,000 Opening work in progress Costs for the month Weight after cooking Transferred to finishing department Closing work in progress |(100% material, 65% CC) 30,000 420,000 440,000 362,000 65,000 Required: Prepare process account for cooking department for the month of June 2019
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