At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Connect with a community of experts ready to help you find solutions to your questions quickly and accurately. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
To prepare the process accounts for Processes A and B, we will follow these steps:
### Process A Account
1. Calculate Normal Wastage (Units and Value) for Process A:
- Normal Wastage Units:
[tex]\[ \text{Normal Wastage } = \text{Input Units} \times \left(\frac{\text{Normal Wastage \%}}{100}\right) = 10000 \times \left(\frac{5}{100}\right) = 500 \][/tex]
- Normal Wastage Value:
[tex]\[ \text{Normal Wastage Value} = \text{Normal Wastage Units} \times \text{Value per 100 units} = 500 \times 8 = 4000 \][/tex]
2. Total Cost for Process A:
- Summing all costs and adjusting for normal wastage value:
[tex]\[ \text{Total Cost } = \text{Materials Consumed} + \text{Direct Labour} + \text{Manufacturing Expenses} + \text{Input Value} - \text{Normal Wastage Value} = 12000 + 14000 + 4000 + 10000 - 4000 = 36000 \][/tex]
3. Cost per Unit for Process A:
- Total Output Units: 9400
- [tex]\[ \text{Cost per Unit} = \frac{\text{Total Cost}}{\text{Output Units}} = \frac{36000}{9400} \approx 3.83 \][/tex]
### Process B Account
1. Calculate Normal Wastage (Units and Value) for Process B:
- Normal Wastage Units:
[tex]\[ \text{Normal Wastage } = \text{Output Units from Process A} \times \left(\frac{\text{Normal Wastage \%}}{100}\right) = 9400 \times \left(\frac{10}{100}\right) = 940 \][/tex]
- Normal Wastage Value:
[tex]\[ \text{Normal Wastage Value} = \text{Normal Wastage Units} \times \text{Value per 100 units} = 940 \times 10 = 9400 \][/tex]
2. Input Value from Process A into Process B:
- [tex]\[ \text{Input Value from Process A} = \text{Output Units from Process A} \times \text{Cost per Unit from Process A} = 9400 \times 3.83 \approx 35998 \][/tex]
3. Total Cost for Process B:
- Summing all costs and adjusting for normal wastage value:
[tex]\[ \text{Total Cost } = \text{Materials Consumed} + \text{Direct Labour} + \text{Manufacturing Expenses} + \text{Input Value from Process A} - \text{Normal Wastage Value} = 6000 + 8000 + 4000 + 35998 - 9400 = 44600 \][/tex]
4. Cost per Unit for Process B:
- Total Output Units: 8300
- [tex]\[ \text{Cost per Unit} = \frac{\text{Total Cost}}{\text{Output Units}} = \frac{44600}{8300} \approx 5.37 \][/tex]
### Final Result Breakdown
- Units of Normal Wastage for Process A: 500 units
- Value of Normal Wastage for Process A: Rs. 4,000
- Total Cost for Process A: Rs. 36,000
- Cost per Unit for Process A: Rs. 3.83
- Units of Normal Wastage for Process B: 940 units
- Value of Normal Wastage for Process B: Rs. 9,400
- Total Cost for Process B: Rs. 44,600
- Cost per Unit for Process B: Rs. 5.37
By calculating the above steps, we can prepare and complete the process accounts for both Process A and Process B accurately.
### Process A Account
1. Calculate Normal Wastage (Units and Value) for Process A:
- Normal Wastage Units:
[tex]\[ \text{Normal Wastage } = \text{Input Units} \times \left(\frac{\text{Normal Wastage \%}}{100}\right) = 10000 \times \left(\frac{5}{100}\right) = 500 \][/tex]
- Normal Wastage Value:
[tex]\[ \text{Normal Wastage Value} = \text{Normal Wastage Units} \times \text{Value per 100 units} = 500 \times 8 = 4000 \][/tex]
2. Total Cost for Process A:
- Summing all costs and adjusting for normal wastage value:
[tex]\[ \text{Total Cost } = \text{Materials Consumed} + \text{Direct Labour} + \text{Manufacturing Expenses} + \text{Input Value} - \text{Normal Wastage Value} = 12000 + 14000 + 4000 + 10000 - 4000 = 36000 \][/tex]
3. Cost per Unit for Process A:
- Total Output Units: 9400
- [tex]\[ \text{Cost per Unit} = \frac{\text{Total Cost}}{\text{Output Units}} = \frac{36000}{9400} \approx 3.83 \][/tex]
### Process B Account
1. Calculate Normal Wastage (Units and Value) for Process B:
- Normal Wastage Units:
[tex]\[ \text{Normal Wastage } = \text{Output Units from Process A} \times \left(\frac{\text{Normal Wastage \%}}{100}\right) = 9400 \times \left(\frac{10}{100}\right) = 940 \][/tex]
- Normal Wastage Value:
[tex]\[ \text{Normal Wastage Value} = \text{Normal Wastage Units} \times \text{Value per 100 units} = 940 \times 10 = 9400 \][/tex]
2. Input Value from Process A into Process B:
- [tex]\[ \text{Input Value from Process A} = \text{Output Units from Process A} \times \text{Cost per Unit from Process A} = 9400 \times 3.83 \approx 35998 \][/tex]
3. Total Cost for Process B:
- Summing all costs and adjusting for normal wastage value:
[tex]\[ \text{Total Cost } = \text{Materials Consumed} + \text{Direct Labour} + \text{Manufacturing Expenses} + \text{Input Value from Process A} - \text{Normal Wastage Value} = 6000 + 8000 + 4000 + 35998 - 9400 = 44600 \][/tex]
4. Cost per Unit for Process B:
- Total Output Units: 8300
- [tex]\[ \text{Cost per Unit} = \frac{\text{Total Cost}}{\text{Output Units}} = \frac{44600}{8300} \approx 5.37 \][/tex]
### Final Result Breakdown
- Units of Normal Wastage for Process A: 500 units
- Value of Normal Wastage for Process A: Rs. 4,000
- Total Cost for Process A: Rs. 36,000
- Cost per Unit for Process A: Rs. 3.83
- Units of Normal Wastage for Process B: 940 units
- Value of Normal Wastage for Process B: Rs. 9,400
- Total Cost for Process B: Rs. 44,600
- Cost per Unit for Process B: Rs. 5.37
By calculating the above steps, we can prepare and complete the process accounts for both Process A and Process B accurately.
Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.
