Q1. A company uses process costing to value output.

During the last month the following information

was recorded:
Input 1,500 unit of material at £12.0 per unit
Conversion cost £50,000
Normal loss: 300 units which has a scrap value of £4 per unit
Actual loss: 200 units
Prepare process account showing output and any abnormal loss or gain

Q2. At the start of the month there was no work-in-progress. During the month, 300 litres of raw
material were input into the process at a total cost of $12,000. Conversion costs during the month
amounted to $9,000. At the end of the month, 250 litres of Chemical X were transferred to finished
goods inventory. The remaining work-in-progress was 100% complete with respect to materials and 50%
complete with respect to conversion costs. There were no losses in the process.
Prepare process account.

Q3. Raw materials costing £12,800 were input to a process during a period. Conversion costs totalled
£18,430. There was no work-in-progress at the beginning of the period and no process losses during the
period. 3,600 units of the product were completed in the period with 400 units remaining in the process
at the end of the period, complete for materials and with 70% of the conversion costs applied.
Prepare process account.

Q4. Material transferred from process X 2,000 litres at $4 per litre. Conversion costs incurred $12,250.
Output transferred to finished goods 1,600 litres. Closing work in progress is fully complete for material
but is only 50 per cent processed.
Prepare process account.

Q5. Following information is available for a production process for the last period:
Material input 200 kg at $4 per kg
Labour 100 hours at $15 per hour
Production overheads $1000
Transfer to finished goods 150 kg
Material is added at the start of the process. Normal losses are 10% of input. Losses are identified when
the process is 50% complete. There was no WIP at the beginning or at the end pf period.
Prepare process account.

1
Q6.

4. prepare process account if company is using FIFO method

2
Q7.

Prepare process account by using weighted average and FIFO method

3
Q8.

4
Q9.

Q10. Opening WIP was 4,000 units (£6,500 for material and £8,000 for conversion cost). Direct material
input during the process was 35,000 units costing £280,000. Conversion cost incurred during the period
was £300,000. Output from the process was 33,000 units. Closing WIP was 6,000units (75% complete for
material and 60% complete for labour and overheads). Calculate cost per unit of completed output and
valuation of closing WIP.
HINT: Since stage of completion of opening WIP is not given in the question, we cannot apply FIFO. So using Weighted average method