Process Costing - Exercise

Nur Cosmetics produces a skin care product known as “Floles”. The production is conducted at a factory where it has to undergo three different processes. The output of each process is treated as the raw material of the next process to which it is transferred and output of the third process is transferred to finished stock. The supervisor had already prepared all the relevant information as below;

	1st Process	2nd Process	3rd Process
Material issued	30,000	20,000	10,000
Labour	8000	4,000	1,000
Overhead	12,000	10,000	15,000

10,000 units have been issued to the first process and after processing of each process is as under:

	Output	Normal Loss
First process	9,700 units	2%
Second process	9,500 units	3%
Third process	8,700 unts	5%

No stock of materials or work-in-progress was left at the end.

Required:

Prepare the process accounts of each of the above process