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Questions and Answers
What is the normal wastage rate for Process A?
What is the normal wastage rate for Process A?
- 5% (correct)
- 20%
- 15%
- 10%
What is the output from Process B?
What is the output from Process B?
- 750 units (correct)
- 850 units
- 700 units
- 800 units
What is the total cost of materials for Process A?
What is the total cost of materials for Process A?
- ₹8,000
- ₹5,000
- ₹12,000
- ₹10,000 (correct)
What is the scrap value of normal wastage for Process B?
What is the scrap value of normal wastage for Process B?
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How much did Process A spend on wages?
How much did Process A spend on wages?
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Study Notes
Process A
- Normal wastage rate is 5%
- Scrap value for process A is ₹50 per 100 units
- 1,000 units were input at a cost of ₹5,000
- 900 units were output
- Process A expenses:
- Materials: ₹10,000
- Wages: ₹8,000
- Manufacturing expenses: ₹2,000
Process B
- Normal wastage rate is 10%
- Scrap value for process B is ₹80 per 100 units
- 750 units were output
- Process B expenses:
- Materials: ₹6,000
- Wages: ₹4,000
- Manufacturing expenses: ₹2,000
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