2,000 units of raw material were introduced in a process „A‟ at a

2,000 units of raw material were introduced in a process „A‟ at a cost of RS 8,000. The normal wastage allowed is 10%, each unit of waste realizes RS 2.5. The actual production was 1,700 units (with abnormal wastage of 100 units). The expenses being as follows: Direct wages RS 13,000 Indirect expenses RS 6,500 Prepare the process ‘A’ account.

Answer»

Dr.

Process „A‟ Account

Cr.

Particulars	Units	Amount	Particulars	Units	Amount
To Raw Material	2000	8000	By Normal Loss A/c	200	500
To Direct Wages		13000	By Abnormal Loss A/c		1500
To Indirect exp.		6500	By transfer to Next Process		25500
		27500			27500

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