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How do u prepare Cost sheet? on what basis it is prepared
how it is useful to the management?
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Answer Posted / riswan
According to the format we can proceed i.e 1st we get Prime
Cost,Factory OH,Cost of Pdn like dat.It is useful fo Find
the cost of production.How we spend for Product to Produce.
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hdn Systems Pvt. Ltd., manufactures a consumer durable which passes through two processes M and N. From the following details prepare necessary process ledger accounts bringing out clearly the cost of the product at each stage. Process ‘M’ Process ‘N’ Materials (Rs.) 30,000 3,000 Labour (Rs.) 10,000 12,000 Overheads (Rs.) 7,000 8,600 Input (units) 20,000 17,500 Normal loss 10% 4% Scrap value of loss (per unit) Re. 1.00 Rs. 2.00 There is no opening or closing W-I-P or stock at processes. Final output from the process ‘N’ was 17,000 units
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