Scrapping of Material !!

Hi Friends

Material X is an excisable raw material (ROH)

It undergoes different operations and changes to X1 then X2 then X3 (all HALB).

Finally it changes to Y a finished product (FERT). This is also excisable.

During different operations its valuation changes due to the various operations.

Now during one of the operations X2 is rejected and it has to be scrapped.

How to go about it ... we need to book losses also.

How to deal with excise and stock? How to scrap it?

Scap is sold with excise

Any idea? Gud ideas wil be suitably awarded

Thank You