Conversion of jewellery wastage treatment

caclub member (accountant) (46 Points)

08 June 2023  
gave 1kg 999. gold and alloy 87g. to make 92.5%.
recvd 1.087 gm.
but purity is rcvd as 87.5%.
karigar took 7.5% as wastage and labour charges 1000rs total.
accounting treatment what should given in tally ?