document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1182666>Question 1182666</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Following information relates to Process A account<BR>\n" );
document.write( "10000 Units introduced at Rs 20000<BR>\n" );
document.write( "Material consumed Rs 5000<BR>\n" );
document.write( "Manufacturing expenses Rs 2000<BR>\n" );
document.write( "Direct Labour charges Rs 6000<BR>\n" );
document.write( "Units transferred to next process B- 9500<BR>\n" );
document.write( "It is bound that wastage in this process is 3%<BR>\n" );
document.write( "There is no realizable value of scrap<BR>\n" );
document.write( "Prepare the process account reflecting the value at which output will be transferred to the next<BR>\n" );
document.write( "process </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #849912 by </B><A HREF=/tutors/aboutme.mpl?userid=CPhill><B>CPhill(1987)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=CPhill><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=CPhill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=849912\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> **Process A Account**\r<BR>\n" );
document.write( "\n" );
document.write( "| Particulars                     | Amount (Rs.) | Particulars                     | Amount (Rs.) |<BR>\n" );
document.write( "|---------------------------------|-------------|---------------------------------|-------------|<BR>\n" );
document.write( "| Units Introduced                |             | Units Transferred to Process B |             |<BR>\n" );
document.write( "| 10,000 Units @ Rs. 20,000       | 20,000      | 9,500 Units                    |  *See Calculation Below* |<BR>\n" );
document.write( "| Materials Consumed              | 5,000       | Normal Wastage (3% of 10,000) | 300 Units   |<BR>\n" );
document.write( "| Manufacturing Expenses          | 2,000       |                                 |             |<BR>\n" );
document.write( "| Direct Labour Charges           | 6,000       |                                 |             |<BR>\n" );
document.write( "| **Total Inputs**                | **33,000**  | **Total Outputs**               | **33,000**  |\r<BR>\n" );
document.write( "\n" );
document.write( "**Calculation of Value of Units Transferred to Process B:**\r<BR>\n" );
document.write( "\n" );
document.write( "1. **Total Cost:**<BR>\n" );
document.write( "   Total cost incurred in Process A = Rs. 33,000 (as shown in the account)\r<BR>\n" );
document.write( "\n" );
document.write( "2. **Cost per Unit:**<BR>\n" );
document.write( "   Total units introduced = 10,000 units<BR>\n" );
document.write( "   Normal Wastage = 300 units<BR>\n" );
document.write( "   Good output units = 10,000 - 300 = 9,700 units<BR>\n" );
document.write( "   Cost per unit = Rs. 33,000 / 9,700 units = Rs. 3.40 (approximately)\r<BR>\n" );
document.write( "\n" );
document.write( "3. **Value of Units Transferred:**<BR>\n" );
document.write( "   Units transferred to Process B = 9,500 units<BR>\n" );
document.write( "   Value of units transferred = 9,500 units * Rs. 3.40/unit = Rs. 32,300 (approximately)\r<BR>\n" );
document.write( "\n" );
document.write( "*Therefore, the Process A account will be completed as follows:*\r<BR>\n" );
document.write( "\n" );
document.write( "**Process A Account**\r<BR>\n" );
document.write( "\n" );
document.write( "| Particulars                     | Amount (Rs.) | Particulars                     | Amount (Rs.) |<BR>\n" );
document.write( "|---------------------------------|-------------|---------------------------------|-------------|<BR>\n" );
document.write( "| Units Introduced                |             | Units Transferred to Process B |             |<BR>\n" );
document.write( "| 10,000 Units @ Rs. 20,000       | 20,000      | 9,500 Units @ Rs. 32,300        | 32,300       |<BR>\n" );
document.write( "| Materials Consumed              | 5,000       | Normal Wastage (3% of 10,000) | 300 Units   |<BR>\n" );
document.write( "| Manufacturing Expenses          | 2,000       |                                 |             |<BR>\n" );
document.write( "| Direct Labour Charges           | 6,000       |                                 |             |<BR>\n" );
document.write( "| **Total Inputs**                | **33,000**  | **Total Outputs**               | **33,000**  |<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );