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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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