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A prouduct passed through three stage of the production and
product for each stage become the raw material for the new
stage further raw material on also added at each stage .
During the march 2000, 1000 unit of finishied prouduction
produced with following expenditure.
A B C
material 10000 8000 4000
labour 8000 12000 6000
on cost 5000 4000 2000
inculuded expenses amount to 5200 and to be allocated on
the bassis of labour main raw material issue to stage A
was worth rs 6400\- prepare the procesing cost account with
unit each stage and total cost finishied product the final
stage.
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Process 1
To Main material 6400 By Process 2 a/c 31000
To Material issued 10000
To Labour Cost 8000
To Expenses 5000
To OH 1600
31000 31000
Process 2
To Process 1 A/c 31000 By Process 3 a/c 57400
To Material issued 8000
To Labour Cost 12000
To Expenses 4000
To OH 2400
57400 57400
Process 3
To Process 2 A/c 57400 By Finished Goods a/c 70600
To Material issued 4000
To Labour Cost 6000
To Expenses 2000
To OH 1200
70600 70600
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