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![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](https://image.slidesharecdn.com/processcostingexampleques-250721154438-fcc8218b/75/Process-Costing-Example-Ques-b-com-h-Old-ppt-6-2048.jpg)
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Process Costing Example Ques.b.com h Old.ppt
- 1. CHAPTER - 8 CHAPTER- 8 Process Costing Process Costing
- 2. PROCESS I SOLUTION 3 Particulars ParticularsUnit 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
- 3. PROCESS II Particulars Particulars Unit UnitAmt. 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
- 4. PROCESS III Particulars Particulars Unit UnitAmt. 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
- 5. 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
- 6. FORMULAE] Calculation of abnormalloss or abnormal effective: - = To Cost – Normal wastage Amount (To input units – Normal wastage unit) × Abnormal wastage Unit / abnormal of effective units
- 7. PROCESS I Let Inputin 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
- 8. PROCESS III Remaining unittransfer 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
- 9. PROCESS X SOLUTION 7 Particulars ParticularsUnit 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
- 10. WORKING NOTE Let Inputunit = 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
- 11. Calculation of abnormalwastage = Process I = 22,350 – 750 × 200 3,000 – 300 = 21,600 × 200 2,700 = 1,600
- 12. PROCESS A ACCOUNT SOLUTION10 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
- 13. WORKING NOTE = 1,61,000– 8,000 × 20 1,000 – 150 = 1,53,000 × 20 850 = ` 3,600
- 14. PROCESS ACCOUNT SOLUTION 11 Particulars ParticularsUnit 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
- 15. WORKING NOTE = 1,775– 1,250 × 25 250 – 25 = 1,762.5 × 25 225 = ` 196
- 16. ABNORMAL LOSS ACCOUNT Particulars ParticularsUnit 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
- 17. PROCESS I ACCOUNT SOLUTION17 Particulars Unit Amt. Particulars Unit Amt. ---- 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
- 18. PROCESS II ACCOUNT ParticularsUnit Amt. Particulars Unit Amt. ---- 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
- 19. PROCESS III ACCOUNT ParticularsUnit Amt. Particulars Unit Amt. ---- 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
- 20. PROFIT & LOSSACCOUNT Particulars Unit Amt. Particulars Unit Amt. 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
- 21. WORKING NOTE = 1,61,000– 8,000 × 20 1,000 – 150 = 1,53,000 × 20 850 = ` 3,600