PROCESS A

ACCOUNT

DETAILS UNITS RUPEES DETAILS UNITS

Opening
Inventory 0 0 Normal Loss 200

Transfer to
Material 1600 99950 Next Process 1100
Conversion
cost 199900

Closing
Inventory 300

TOTAL 1600 299850 TOTAL 1600

ABNORMAL
LOSS
ACCOUNT

DETAILS UNITS RUPEES DETAILS UNITS

Transferred
From Process Scrap
"P" Account 400 8000 Realization 400
Loss
Transferred to
Costing P/L
Account

TOTAL 400 8000 TOTAL 400

RUPEES

249700

49380

299080

RUPEES

400

7600

8000
STATEMENT SHOWING EQUIVALENT UNITS
Material Conversion Cost
Equivale Equivale
INPUT DETAILS OUTPUT % nt Units % nt Units
(Units) (Units)

0 Opening Inventory
New Introduction
1600 during the Month

Completed &
Transferred to the
Next Process 1100 100 1100 100 1100
Normal Loss 200 0 0 0 0
Abnormal Loss

Closing Inventory 300 100 300 60 180

20000 TOTAL 1600 1400 1280

COMPUTATION OF
AVERAGE COST
PER EQUIVALENT
UNIT

Material Cost Per

Equivalent Unit 71.4
99950/1400

Conversion Cost
Per Equivalent Unit
199900/1280 156.2

TOTAL 20
 VALUATION
EXERCISE

Transfer (1100*227) 249700

Abnormal Loss

Closing Inventory
(300 * 71 + 180 *
156) 49380
sion Cost
 PROCESS B
ACCOUNT

DETAILS UNITS RUPEES DETAILS UNITS

Opening Inventory 300 49380 Normal Loss 150

Units introduced 1100 249700 Abnormal loss 720

Transfer to Next
Materials 19990 Process 500
Conversion cost 39980

Closing Inventory 30

TOTAL 1400 359050 TOTAL 1400

ABNORMAL LOSS ACCOUNT

DETAILS UNITS RUPEES DETAILS UNITS

Transferred From Process "P" Account

400 8000 Scrap Realization 400

Loss Transferred to Costing P/L Account

TOTAL 400 8000 TOTAL 400

RUPEES

229680

214230

86040

529950

RUPEES

400

7600

8000
 STATEMENT SHOWING
EQUIVALENT UNITS

Material
Equivalent
INPUT DETAILS OUTPUT % Units %
(Units) (Units)

300 Opening Inventory

New Introduction during
1100 the Month
Assumption: fifo
Opening inv completed
and transferred 300 100 300 40

Completed & Transferred

to the Next Process 200 100 200 100
Normal Loss 150 0 0 0
Abnormal Loss 720 100 720 50

Closing Inventory 30 100 30 40

20000 TOTAL 1100 950

COMPUTATION OF
AVERAGE COST
PER EQUIVALENT UNIT

Material Cost Per

Equivalent Unit 284
19990+249700/950

Conversion Cost Per

Equivalent Unit
39980/572 70

TOTAL 20
 VALUATION EXERCISE

Transfer
(49830+200*354+300*284+
120*70) 214230

Abnormal Loss
720*284+360*70 229680

Closing Inventory
300*284+12*70 86040
Conversion
Cost
Equivalent
Units

120

200
0
360

12

572
COMPUTATION OF TOTAL PASSENGER KM PER MONTH

P to Q and Back to P
P to R and Back to P
Local Trip

TOTAL KM TRAVELLED PER MONTH

COST INCURRED PER MONTH (DETAILS)

DEPRECIATION
DRIVERS SALARY
CONDUCTORS SALARY
CLERK SALARY
INSURANCE PREMIUM
DIESEL COST
TOKEN TAX
PERMIT FEES
LUBRICANT OIL CHARGES
REPAIR & MAINTENANCE CHARGES

TOTAL COST PER MONTH

TOTAL COST
PROFIT
NET REVENUE
TAX
GROSS REVENUE

TOTAL PASSENGER KM

THEREFORE CHARGE PER PASSENGER PER KM (Approx)

FARE TO BE CHARGED PER PASSENGER FOR TRIP TO Q

FARE TO BE CHARGED PER PASSENGER FOR TRIP TO R
FARE TO BE CHARGED FOR LOCAL TRIP (Approx)
 CALCULATION

250 * 2 * 10 * 50 * 0.90
200 * 2 * 10 * 50 * 0.80
60 * 5 * 50

TOTAL PASSENGER KM

(250 * 2 * 10) + (200 *2 * 10) + (60 * 5)

CALCULATION

(35,00,000 * 0.25) / 12

18000 / 12
(9300 * 60) / 5
24000 / 12

(9300 * 500) / 200

67
33
100
20
120

500 * 1.16
400 * 1.16
60 * 1.16
TOTAL PASSENGER KM

225000
160000
15000

400000

9300 Kilometers

RUPEES

72917
15000
12000
3000
1500
111600
2000
3000
23250
15000

259267

259267
127699
386966
77393
464359

400000

1.16

580
464
70
 RANJEET HOTEL
OPERATING COST STATEMENT
FOR A REPRESENTATIVE YEAR

Room Attendant Wages (As Computed)

Lighting & Power Charges (As Computed)
Staff Salaries
Repairs & Maintenance Charges
Linen Etc
Interior Decoration
Miscellaneous Expenses
Depreciation on Building (5% of 1400000)
Depreciation on Furniture & Fixtures (10% of 100000)
Depreciation on Air Conditioners (10% of 200000)

TOTAL COST DURING THE YEAR

PROFIT LOADED (25% of Total Cost)

TOTAL REVENUES (That needs to be earned)

Equivalent Single Room Days (As Computed)

Single Room Charge Per Day (831000 / 41550)

Therefore Double Room Charge Per Day (20 * 1.5)

Therefore Triple Room Charge Per Day (20 * 2)

Rupees

93150
83100
220000
42000
45000
50000
31550
70000
10000
20000

664800

166200

831000

41550

20

30

40
 ROOM DAYS

Single Room
Double Room
Triple Room

TOTAL

EQUIVALENT SINGLE ROOM DAYS

ROOM ATTENDANT WAGES

Single Room

Double Room

Triple Room

TOTAL

LIGHTING & POWER CHARGES

Single Room
Double Room
Triple Room

TOTAL
 COMPUTATIONS DAYS

100 * 7 * 30 * 90% + 100 * 5 * 30 * 50% 26400

30 * 7 * 30 * 80% + 30 * 5 * 30 * 20% 5940
20 * 7 * 30 * 60% + 20 * 5 * 30 * 20% 3120

35460

26400 + 5940*1.5 + 3120 *2 41550

COMPUTATIONS SUMMER
Rs

100 * 7 * 30 * 90% * 2.00 37800

100 * 5 * 30 * 50% * 3.00

30 * 7 * 30 * 80% * 3.00 15120

30 * 5 * 30 * 20% * 4.50

20 * 7 * 30 * 60% * 4.00 10080

20 * 5 * 30 * 20% * 6.00

63000

Rs

26400 * (40 + 20) / 30 52800

5940 * (60 + 30) / 30 17820
3120 * (80 + 40) / 30 12480

83100
WINTER TOTAL
Rs Rs

37800
22500 22500

15120
4050 4050

10080
3600 3600

30150 93150