The following details are taken from a factory Particulars Process I II Finished stock Operating stock ......(Rs) 20,000 25,000 40,000 Direct…
BBS Cost and Management Accounting · 2080 · Solved Question with Answer
The following details are taken from a factory
| Particulars | Process I | II | Finished stock |
| Operating stock ......(Rs) | 20,000 | 25,000 | 40,000 |
| Direct material ......(Rs) | 90,000 | 60,000 | - |
| Direct wages ......(Rs) | 50,000 | 40,000 | - |
| Factory overheads ......(Rs) | 30,000 | 20,000 | - |
| Closing stock valued at prime cost ......(Rs) | 50,000 | 60,000 | - |
| Inter process profit on opening stock ......(Rs) | - | 5,000 | 10,000 |
The output of process I is transferred to process II at a profit of 25% on cost price and that of process II to finished stock at a profit of 20% on transfer price. The factory sold 80% of the finished goods for Rs. 350,000.
**Required** :
-**Process I and II account**
- Finished stock account
- Actual realized profit