JUN 2018 – QUESTION 2 PROCESS COSTING

PROCESS A ACCOUNT
UNITS CPU RM UNITS CPU RM
MATERIAL 8,000 30.00 240,000 TO PB 7,000 50.00 350,000
D.LABOUR 80,000 N.LOSS 400 10.00 4,000
PROD. O/H 64,000 A.LOSS 600 50.00 30,000
8,000 384,000 8,000 384,000

Expected Output = 8,000 – 400 = 7,600

Abnormal Loss = 7,600 – 7,000 = 600
CPU = 384,000 – 4,000 / 8,000 – 400 = RM50.00

PROCESS B ACCOUNT
UNITS CPU RM UNITS CPU RM
OWIP 1,000 54,740 F.GOODS 7,000 491,940
FROM PA 7,000 350,000 N.LOSS 400 10.00 4,000
MATERIAL 69,600 CWIP 800 49,440
C.COST 57,440
A.GAIN 200 13,600
8,200 545,380 8,200 545,380

NORMAL LOSS = 400

ABNORMAL GAIN = 200
OUTPUT/FINISCHED GOODS = 7,000
CWIP??? = 1,000 + 7,000 – 400 + 200 – CWIP = 7,000

FINISHED GOODS = 7,000

OWIP 1,000
CPDP 6,000
STATEMENT OF EQUIVALENT UNITS & COST PER UNIT
UNITS FPP MATERIAL CONVERSION
COST
OWIP 1,000 0 200 500
CPDP 6,000 6,000 6,000 6,000
N.LOSS 400 400 400 400
CWIP 800 800 560 480
A.GAIN (200) (200) (200) (200)
TOTAL EU 7,000 6,960 7,180
COSTS 350,000 69,600 57,440
COST / EU 50 10 8

STATEMENT OF EVALUATION
FPP ADD CONVERSION TOTAL
MATERIAL COST
OWIP 0 2,000 4,000 6,000
CPDP RM68 X 6,000 408,000
N.LOSS 27,200
(NLSV 4,000)
23,200
CWIP 40,000 5,600 3,840 49,440
A.GAIN RM68 X 200 13,600

*COST OF FINISHED GOODS

OWIP B/F 54,740
OWIP CURRET 6,000
CDPD 408,000
N.LOSS 23,200
491,940