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ab ltd is engaged in the process engineering industry during the month october 2007 625819

AB Ltd is engaged in the process engineering industry. During the month, October 2007, 2000 units were introduced in process ‘X’. The normal loss is estimated at 5% of input. At the end of the month, 1400 units had been produced and transferred to process ‘Y’, 460 were incomplete units, and 140 units had to be scrapped at the end of the process. The incomplete units reached the following degree of completion:

Material: 75%, Labor: 50%, overheads: 50%

Following are the further details regarding process X.

Cost of 2000 units introduced: Rs. 58,000

Additional material consumed Rs. 14,400

Direct labor: Rs. 33,400

Allocated overheads: Rs. 16,700

Note: The scrapped units fetched Rs.10 each.

Required: [As per First In First Out Method]

A] Statement of equivalent production

B] Statement of cost

C] Statement of evaluation

D] Process ‘X’ Account.

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