PROCESS I ACCOUNT

Particulars Untis Rate Amout(Rs)

To Material
To Labour
To Direct Expenses
To Factory Overheads

PROCESS II ACCOUNT
Particulars Untis Rate Amout(Rs)
To Process I A/C
To Material
To Labour
To Direct Expenses
To Factory Overheads

PROCESS III ACCOUNT

Particulars Untis Rate Amout(Rs)
To Process II A/C
To Material
To Labour
To Direct Expenses
To Factory Overheads

FINISHED GOODS ACCOUNT

Particulars Untis Rate Amout(Rs)
To Process III A/C
To Office and Adminstration overheads

COST OF SALES ACCOUNT

Particulars Untis Rate Amout(Rs)
To Finished Goods A/C
To Selling and Distribution A/C

COSTING PROFIT AND LOSS ACCOUNG

Particulars Untis Rate Amout(Rs)
To Cost of Sales A/C
To Profit
 ACCOUNT
Particulars Untis Rate Amout(Rs)
By Process II A/C
By Normal Loss A/C
By Abnormal A/C

I ACCOUNT
Particulars Untis Rate Amout(Rs)
By Process III A/C
By Normal Loss A/C
By Abnormal A/C

II ACCOUNT
Particulars Untis Rate Amout(Rs)
By Finised Goods A/C
By Normal Loss A/C
By Abnormal A/C

ODS ACCOUNT
Particulars Untis Rate Amout(Rs)
By Cost of Sales A/C

LES ACCOUNT
Particulars Untis Rate Amout(Rs)
By CostingP&L A/C

ND LOSS ACCOUNG
Particulars Untis Rate Amout(Rs)
By Sales
By Loss
 From the following data, prepare process
accounts indicating the cost of each process
and total cost. Total units that passthrough
eachprocess were 240 for the period.
Particular Process I Process IIProcessIII
Material 150000 50000 20000
Labout 80000 200000 60000 340000
Other Exp 26000 72000 25000
Indirect expenses amounting to Rs 85000

may be apportioned on the basis of wages .

There was no opening or closing stock

Intirect Expneses - Factory over heads

Working Note
Ratio 8 20 6
85000x8/385000x20/85000x6/34

20000 50000 15000 85000

Neo Pharma processes aprodct through three distrnc astages the product of one process being passed on to

the next process and so on to the finished product intaxt.

A B
Raw Materials 1150 1050
Direct Wages 500 600
The overhead expenses for the period amunted to Rs 3600 and is to be distributed to the peirod .

a. Assuming the output was 1000kilos show the process cost fo A,B and C indicating also the cost per kilo of
each element of cost and the output in each process.
b. If 10% of the output is lost in storage and giving samples,w hat should the selling price per unit be to maek
a gross rofit 33 1/3 % on selling price
ct through three distrnc astages the product of one process being passed on to

the finished product intaxt.

C
700
700
e period amunted to Rs 3600 and is to be distributed to the peirod .

000kilos show the process cost fo A,B and C indicating also the cost per kilo of
output in each process.
in storage and giving samples,w hat should the selling price per unit be to maek
g price
Bengal Chemical Co. Ltd produced three chemiclas during the month of July,2018 by threee consecutive

process .In each process 2% of the total weigh put in is lost and 10% is scrap which from processes (1) and (2)

realised Rs 100 a ton and from process(3) Rs 20 a ton

The products of three processes are dealt with as follows:
Process I ProcessII Process III
Passed on the next process 75% 50% nil
Sent to warehouse for sale 25% 50% 100%
Expenses Incurred
Process I Process II Process II
Raw Materiasl 120000 1000 Tons 28000 140 Tons 107840 1348 Tons
Manufacturing Wages 20500 18520 15000
General Expenses 10300 7240 3100
Prepare Process Cost Accounts Showing the cost per ton of each product.

1000

10000
660
35200

Cost per un
Units
1348 Tons

Normal Loss
(2% of 1000) 20
Scrap sale 100
10% of 1000 tons
Trasfer to Next Process 75% 660

Transfer to WareHouse 25% 220

1000

140800
880
160
In process A 100 units of raw materials were introduced at a cost fo Rs 1000. The other

expenditure incurred by the process was Rs 602. Of the units introduced 10% are normally

lost in the ourse of manufacture and they possess a scrap value of Rs 3 each.The output of

Process A was only 75 units. Prepare Process a Account and Abnormal Loss Account

100 10
15
75
100 100
Valuation of Abnormal Loss: RM other Exp Scrap Vlaue
Cost of Normal Output 1000 602 30 1572
(Output-Normal Loss) 100 10 (100-10) 90

Abnormal Loss per unit 17.46667

Total Abnormal Loss 15 Units 17.46667 Per unit 262

Process A Account
Particualrs Units Amount (RParticualrs Units Amount (Rs)
To Raw materials 100 1000 By Normal Loss 10 30
To Other expenses 602 By Abnormal Loss 15 262
By Process B A/C 75 1310
100 1602 100 1602

Abnormal Loss Account

Particualrs Qty(kgs) Amount (RParticualrs Qty(kgs) Amount (Rs)
To Process A A/C 15 262 Costing Profit & Loss Accoun 15 262

15 262 15 262
A Company manufactures a chemical product by a series of operations in three processes. Raw material is
fed into Process I and the finished chemical that comes out of Process
Particulars Process IIII Process
is transferred to finished goods
II ProcessIII
store. The following particulars relating to operations for April 2019 are given below
Material 80000Kgs 960000 Nil Nil
Labour 125600 172000 142500
Ovehead costs 168000 177280 124690
Normal Processing Loss(% of input) 3 2 1
Output transferred to next process 74000 Kgs 69400 Kgs 69000Kgs
Work-in-Process(cb) 3000 2400 nil
(Processed mateiral awaiting transfer to next process)
Prepare the accounts of Processes I,II and III and also abnormal loss and abnormal gain acconts, if any

1Abnoral Loss/Abnorma Gain Per Unit( Value for WIP) I II III

1195443 1478265 Calculated
960000 Nil Nil
125600 172000 142500
168000 177280 124690
Cost of Total Unts 1253600 1544723 1745455

Number of Units 80000 74000 69400

3% 2% 1%
Normal Loss Units 2400 1480 694

Number of Units - Normal Loss Units 77600 72520 68706

Cost of Total Unts /( Number of Units -Normal Loss Units) 16.1546 21.30065 25.4047

2 Abnorma Loss Untis I II III

Actual Units 80000 74000 69400
Less Normal Loss Units 2400 1480 694
Less WIP 3000 2400
Transferred to Nex process 74000 69400 69000
Abnormal Loss 600 720 -294 Abnorma Gain

1195443 1478265 1752924

 Process I Account
Particualrs Qty(kgs) Amount (RsParticualrs Qty(kgs)
To Materials 80000 960000 By Normal Loss 2400
ToLabour 125600 (3%of input)
To Overheads 168000 (80000x3%)
By Abnormal Loss 600

By WIP 3000

By Process II 74000

80000 1253600 80000

77600 1253600
16.154639

Process II Account
Particualrs Qty(kgs) Amount (RsParticualrs Qty(kgs)
To Process I A/C 74000 1195443 By Normal Loss 1480
ToLabour 172000 (2%of input)
To Overheads 177280 (80000x3%)
By Abnormal Loss 720

By WIP 2400

By Process III 69400

74000 1544723 74000

72520 1544723
21.300654

Process III Account

bnorma Gain Particualrs Qty(kgs) Amount (RsParticualrs Qty(kgs)
To Process I IA/C 69400 1478265 By Normal Loss 694
ToLabour 142500 (1%of input)
To Overheads 124690
To Abnormal Gain 294 7469.0
 By Finished Goods 69000

69694 1752924 69694

68706 1745455
25.404701

Abnormal Gain
Qty transferred to Finished Goods A/C 69000
Less: Actual qty- Normal Loss
69400-694 68706
Abnormal Gain 294

Abnormal Loss Account

Particualrs Qty(kgs) Amount (RsParticualrs Qty(kgs)
To Process I A/C 600 9693 By Costing Profit & Loss A/C 1320
To ProcessII A/C 720 15336
1320 25029 1320

Abnormal Gain Account

Particualrs Qty(kgs) Amount (RsParticualrs Qty(kgs)
To Costing Profit & Loss A/C 294 7469 By Process III A/C 294

294 7469 294

Finished Goods A/C

Particualrs Qty(kgs) Amount (RsParticualrs Qty(kgs)
To Process III A/C 69000 1752924 By Costing Profit and Loss A/C 69000

69000 1752924 69000

COSTING PROFIT AND LOSS ACCOUNG

Particulars Untis Rate Amout(Rs) Particulars
To Finished Goods A/C 69000 1752924.3938 By Sales
To Abnormal Loss A/C 1320 25029 By Abnormal
To Profit By Loss
Amount (Rs)

9693

48464

1195443

1253600

Amount (Rs)

15336

51122

1478265

1544723

Amount (Rs)
68706 69000 294
 1752924

1752924

Amount (Rs)
25029

25029

Amount (Rs)
7469

7469

Amount (Rs)
1752924.3938

1752924.3938

Untis Rate Amout(Rs)

294 7469