A product passes through three stages of production where the output of each stage becomes the raw materials for the next stage. Further raw materials are also added at each stage. During a period, 1,500 units of finished product were produced with the following expenditure:

	Stage A	Stage B	Stage C
Material Labour Production expenses	24,000 12,500 14,000	14,000 9,000 8,000	8,000 6,000 5,000

Primary raw material issued to stage A, in addition to the above, was worth 13,500. Indirect expenses amounting to 22,000 are to be allocated on the basis of Labor. Prepare process cost accounts showing the cost per unit at each stage and the total cost of finished product at the final stage

Solution Will update soon

Product X requires three distinct processes and after the 3^rd process the product is transferred to finished stock. You are required to prepare various process accounts from the following information.

	Total	P1	P2	P3
Material Direct Wages Direct expenses Production Overhead	20,400 23,000 24,900 32,200	12,000 11,500 12,500	6,000 7,600 12,400	2,400 3,900 –

Production overheads to be allocated to different processes at the rate of 140% of direct wages. Production during the period was 2,000 lbs. Assume there is no opening and closing stock.

Solution Will update soon