Process Costing Example Ques.b.com h Old.ppt

CHAPTER - 8
CHAPTER - 8
Process Costing
Process Costing

PROCESS I
SOLUTION 3
Particulars
Particulars Unit
Unit Amt.
Amt. Particulars
Particulars Unit
Unit Amt.
Amt.
5,520
480
By transferred to next
process 2nd
(` 11.50 per unit)
3,000
1,600
520
400
480
To Sundry Material
To Wages
To Overheads
To Indirect Expense
5,520
480
5,520
480

PROCESS II
Particulars
Particulars Unit
Unit Amt.
Amt. Particulars
Particulars Unit
Unit Amt.
Amt.
12,960
480
By transferred to next
process 3rd
(` 27 per unit)
5,520
1,000
4,000
1,440
1,000
480
To Unit Trans. from
process 1st
To Material
To Wages
To Overheads
To Indirect Expense
12,960
480
12,960
480

PROCESS III
Particulars
Particulars Unit
Unit Amt.
Amt. Particulars
Particulars Unit
Unit Amt.
Amt.
15,360
480
By transferred to
finished goods A/c
12,960
400
1,200
500
300
480
To Unit transferred
from process 2nd
To Material
To Wages
To Overheads
To Indirect Expense
15,360
480
15,360
480

WORKING NOTE
Indirect Expense = 1,700
Wages I II III
1,600 : 4,000 : 1,200
4 : 10 : 3
Process I 1,700 × 4
17 = 400
Process II 1,700 × 10
17 = 1,000
Process III 1,700 × 3
17 = 300

FORMULAE]
Calculation of abnormal loss or abnormal effective: -
= To Cost – Normal wastage Amount
(To input units – Normal wastage unit)
× Abnormal wastage Unit / abnormal of
effective
units

PROCESS I
Let Input in Process I = 100 unit
(-) Normal wastage of 10% 100 = 10
Remaining unit transfer to Process II = 90 Unit
PROCESS II
Remaining unit transfer from process I = 90
(-) Normal wastage as 5% of 90 = 4.50
Remaining unit transfer to next process III = 85.50
SOLUTION 5

PROCESS III
Remaining unit transfer from process II = 85.50
(-) Normal wastage of 8% 85.50 = 6.84
Finished Stock = 78.66
If finished stock 78.66 then input in process I = 100
” ” 1 ” ” = 100
78.66
” ” 3,933 ” ” = 100 ×
3,933
78.66
= 5,000
units

PROCESS X
SOLUTION 7
Particulars
Particulars Unit
Unit Amt.
Amt. Particulars
Particulars Unit
Unit Amt.
Amt.
To Unit Issue @ 5
To Unit Issue @ 5
To Labour
To Labour
To Overheads
To Overheads
3,000
3,000 15,000
15,000
4,000
4,000
3,350
3,350
By Normal wastage
By Normal wastage
(10 of 3,000)
(10 of 3,000)
(300 @ 2.50)
(300 @ 2.50)
By abnormal loss
By abnormal loss
By tft to process Y
By tft to process Y
300
300
200
200
2,500
2,500
750
750
1,600
1,600
20,000
20,000
3,000
3,000 22,350
22,350 3,000
3,000 22,350
22,350

WORKING NOTE
Let Input unit = 100 unit
Normal Wastage
(10% of 100) = 10 unit
Remaining unit = 100 – 10
= 90
If Remaining unit 90 then input = 100
” ” 1 ” = 100
90
” ” 2,700 ” = 100 × 2,700
90
= 3,000 units

Calculation of abnormal wastage =
Process I = 22,350 – 750 × 200
3,000 – 300
= 21,600 × 200
2,700
= 1,600

PROCESS A ACCOUNT
SOLUTION 10
Particulars Unit Amt. Particulars Unit Amt.
----
8,000
3,600
1,49,400
50
100
20
830
By Normal Wastage
(5% of 1,000)
By Normal Scrap
(10% of 1,000)
By Abnormal Wastage
(B/f)
By transfer Process B
@ `165.80 per tonne
1,25,000
28,000
8,000
1,000
To Material
Consumed
(1,000 × 125)
To Wages
To Factory
Expenses
1,61,000
1,000
1,61,000
1,000

WORKING NOTE
= 1,61,000 – 8,000 × 20
1,000 – 150
= 1,53,000 × 20
850
= ` 3,600

PROCESS ACCOUNT
SOLUTION 11
Particulars
Particulars Unit
Unit Amt.
Amt. Particulars
Particulars Unit
Unit Amt.
Amt.
To Unit Issue
To Unit Issue
(2,500 × 5)
(2,500 × 5)
To D. Labour
To D. Labour
To M. Exp.
To M. Exp.
250
250 1,250
1,250
125
125
400
400
By Normal wastage
By Normal wastage
(250 × 10%)
(250 × 10%)
(25 × 0.5)
(25 × 0.5)
By abnormal loss
By abnormal loss
By tfd to finished
By tfd to finished
goods
goods
25
25
25
25
200
200
12.50
12.50
196
196
1,566.50
1,566.50
250
250 1,775
1,775 250
250 1,775
1,775

WORKING NOTE
= 1,775 – 1,250 × 25
250 – 25
= 1,762.5 × 25
225
= ` 196

ABNORMAL LOSS ACCOUNT
Particulars
Particulars Unit
Unit Amt.
Amt. Particulars
Particulars Unit
Unit Amt.
Amt.
To Process I
To Process I 25
25 196
196 By Sale of wastage
By Sale of wastage
unit
unit
(.25 × 0.5)
(.25 × 0.5)
By Costing Profit &
By Costing Profit &
Loss A/c
Loss A/c
25
25 12.50
12.50
183.50
183.50
25
25 196
196 25
25 196
196

PROCESS I ACCOUNT
SOLUTION 17
----
2,500
90,000
1,80,000
50
50
300
600
By Normal Wastage
(5% of 1,000)
By Normal Scrap
(50 × 50)
By Profit & Loss A/c
(B/f) (900 × 1/3)
By transfer Process B
900 tonne × 2/3
2,00,000
72,500
1,000
To Material
Consumed
(1,000 × 200)
To Wages
2,72,500
1,000
2,72,500
1,000

PROCESS II ACCOUNT
----
1,500
1,09,650
1,09,650
60
30
255
255
By Normal Wastage
(10% of 600)
By Normal Scrap
(30 tonne × 50)
By Profit & Loss A/c
(B/f) (510 ton × 1/2)
By transfer Process c
510 tonne × 1/2
1,80,000
40,800
600
To Material
Consumed
To Wages
2,20,800
600
2,20,800
600

PROCESS III ACCOUNT
----
2,550
1,17,810
51
51
153
By Normal Wastage
(20% of 255)
By Normal Scrap
(51 tonne × 50)
By transfer to profit
loss A/c
1,09,650
10,710
255
To Material
Consumed
To Wages
1,20,360
255
1,20,360
255

PROFIT & LOSS ACCOUNT
1,05,000
1,27,500
1,22,400
300
255
153
By Sale of Unit
Process 1st
(300 × 350)
Process 2nd
(255 × 500)
By Process 3rd
(153 × 800)
90,000
1,09,650
1,17,810
17,500
10,000
4,000
5,940
300
255
153
To Process 1st
To Process 2nd
To Process 3rd
To Management
Expense
To Selling Exp
To Interest on
Capital
To Net Profit
3,54,900
708
3,54,900
708

Process Costing Example Ques.b.com h Old.ppt

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Process Costing Example Ques.b.com h Old.ppt