Note

Overhead distributed to process on 5:6:7

P-A-(5/18)*3600=1000
P-B-(6/18)*3600=1200
P-C-(7/18)*3600=1400
 P-A
Dr. Cost Cr.
Cost
Particulars Total Cost Per/unit Particulars Total Cost Per/unit
To RM 1150 1.15 By O/p 2650 2.65
To DW 500 0.5
To OH 1000 1
2650 2.65 2650 2.65

P-B
Dr. Cost Cr.
Cost
Particulars
To bal b/d Total Cost Per/unit Particulars Total Cost Per/unit
from P-A 2650 2.65 By O/P 5500 5.5
To RM 1050 1.05
To DW 600 0.6
To OH 1200 1.2
5500 ###
5.5 5500 5.5

P-C
Dr. Cost Cr.
Cost
Particulars
To bal b/d Total Cost Per/unit Particulars Total Cost Per/unit
from P-B 5500 5.5 By O/p 8300 8.3
To RM 700 0.7
To DW 700 0.7
To OH 1400 1.4
8300 ###
8.3 8300 8.3
 P-I
Dr. Units(tons
Particulars ) Total CostParticulars Units(tons) Total Cost
To RM 1000 120000 By weight loss 2%*1000=20 -100
To MW 20500 By
By Scrap
transfert to 10%*1000=100 tons*Rs.100/ton=10000
To GE 10300 P-II 660 660*160=105600
By sent to WH 220 220*160=35200
1000 150800 1000 150800
Std O/p=I/P- NL
Std O/P=1000-20-100=880
Transfer to P-II-=0.75*880=660 tons
Transfet to WH=0.25*880=220 tons

Cost/unit=(Total cost- Realization from sale of NL units)/(I/P units- NL units)

Cost/unit=(150800-10000)/(1000-120)=Rs.160/unit

P-II
Dr. Units(tons
Particulars
To transfer from ) Total Cost Particulars Units(tons) Total Cost
P-I 660 105600 By weight loss 2%*800=16 -
To RM 140 28000 By
By Scrap
transfert to 10%*800=80 80*100=8000
To MW 18520 P-II 352 352*215=75680
To GE 7240 By sent to WH 352 352*215=75680
800 159360 800 159360
Std O/p=I/P- NL
Std O/P=800-96=704
Transfer to P-III-=0.50*704=352tons
Transfet to WH=0.50*704=352tons
Cost/unit=(Total cost- Realization from sale of NL units)/(I/P units- NL units)
Cost/unit=(159360-8000)/(800-96)=Rs.215/unit

P-III
Dr. Units(tons
Particulars
To transfer from ) Total Cost Particulars Units(tons) Total Cost
P-II 352 75680 By weight loss 2%*1700=34 -
To RM 1348 107840 By Scrap 10%*1700=170 170*20=3400
To MW 15000
To GE 3100 By sent to WH 1496 1496*132.5=198220
1700 201620 1700 201620
Std O/p=I/P- NL
Std O/P=1700-204=1496

Cost/unit=(Total cost- Realization from sale of NL units)/(I/P units- NL units)

Cost/unit=(201620-3400)/(1700-204)=Rs.132.5/unit

132.5
 P-A
Dr.
Particular Total Cost
sMaterial Units (Rs.)
Issued 10000 10000
To SM 1000
To labour 5000
To DE 1050
10000 17050
Std O/p=I/P- NL
Std O/P=10000-300=9700
Ab Loss/gain= St O/P- Actual O/P
Ab Loss/gain=9700-9500=200

Cost/unit=(Total cost- Realization from sale of N

Cost/unit=(17050-75)/(10000-300)=Rs.1.75/un

P-B
Dr.
Particular Total Cost
stransfer Units (Rs.)
from P-A 9500 16625
To SM 1500
To labour 8000
To DE 1188
To Ab Gain 75 75*3=225
9575 27538
Std O/P=9500-475=9025
Ab Loss/gain= St O/P- Actual O/P
Ab Loss/gain=9025-9100=-75

Cost/unit=(Total cost- Realization from sale of N

Cost/unit=(27313-237.5)/(9500-475)=Rs. 3/uni
 Units(tons
Particulars ) Total Cost
By NL 300 0.25*300=75
By Ab loss to
trnsferred 200 200*1.75=350
P-B 9500 9500*1.75=16625

10000 17050

ealization from sale of NL units)/(I/P units- NL units)

10000-300)=Rs.1.75/unit

Units(tons
Particulars )5%*9500 Total Cost
By NL =475 0.50*475=237.5
By O/P
trnsferred to
P-B 9100 9100*3=27300

9575 27538

TC 27313

ealization from sale of NL units)/(I/P units- NL units)

5)/(9500-475)=Rs. 3/unit
 P-B
Dr.
Particular Total Cost
stransfer Units (Rs.)
from P-A 75 1310
To Additional Exp 190
To ab gain 10 10*24=240
85 1740
Std O/P=75-15=60
Ab Loss/gain= St O/P- Actual O/P
Ab Loss/gain=60-70=-10

Cost/unit=(1500-60)/(75-15)=Rs.24/unit
 Particular Units(to
s ns)
20%*75 Total Cost
By NL =15 15*4=60
By O/P 70 70*24=1680
10*24=240
85 1740

- Actual O/P

/(75-15)=Rs.24/unit
 P-I
Dr.
Particulars
To Material Units
introduced 20000
To DM
To labour
To POH
20000
Std O/p=I/P- NL
Std O/P=20000-1600=18400
Ab Loss/gain= St O/P- Actual O/P
0 Ab Loss/gain=18400-18000=400

Cost/unit=(Total cost- Realization from sale of N

Cost/unit=(339000-3200)/(20000-1600)=18.25

P-II
Dr.
Particulars
To transfer Units
from P-I 18000
To DM
To labour
To POH
To Ab Gain 300
18300
Cost/unit=(Total cost- Realization from sale of N
Cost/unit=(438750-2700)/(18000-900)=Rs. 25.5

Sale 100
Profit -20
Cost 80
 Cr. Abnormal loss A/C
Total Cost (Rs.) Particulars Units(tons) Total Cost Dr.
Particular Total Cost Particular Units(tons
200000 By NL 8%*20000=1600 1600*2=3200 s Units (Rs.) sBy Sale of )
60000 By Ab loss to
trnsferred 400 400*18.25=7300 To P-I A/C 400 7300 scrap
By P&L 400
40000 P-II 18000 18000*18.25=328500 A/C
39000
339000 20000 339000

0000-1600=18400
ain= St O/P- Actual O/P
ain=18400-18000=400

=(Total cost- Realization from sale of NL units)/(I/P units- NL units)

=(339000-3200)/(20000-1600)=18.25

Abnormal Gain A/C

Total Cost (Rs.) Particulars Units(tons) Total Cost Dr.
Particular Total Cost Particular Units(tons
328500 By NL 5%*18000=900 900*3=2700 s Units (Rs.) s )
By O/P
40000 trnsferred to to NL 300 900 By P II 300
30000 Warehouyse 17400 17400*25.5=443700 To P&L 6750
40250
300*25.5=7650
446400 18300 446400
=(Total cost- Realization from sale of NL units)/(I/P units- NL units)
=(438750-2700)/(18000-900)=Rs. 25.5/unit

Cost Sale
80` 100
25.5 (?)
25.5*100/80=31.875
Total Cost
400*2=800
6500

Total Cost
7650