Procen Costing

tcesof organisation
-specific
-

Repetitive
J<
that

Task
pasjosm
Raw
Clot
EramPeOOoPoswikedshis
Inteo-Prozen Profits X

Packed
lowe Shisp
Abgain =
avoidance
los.
of normal

Normal Abnormal

"benefit
v

passed on to Nits Produces produces

buyes

Treatment of lower
* losses
rant of
10 10 10 10 10

·
Depart A
agiced
to
supply Good
Normal lon I unit will be lost. to Depart B at a safe that
is
adjected for normal low.

Can I

Depast A
(Produces) will be responsible.
·

2.5 2.5 2.5

for
2.5

10 10 18 10 10 = 50
all abnormalities

Ab.louse
50.1-
* Abgain.
stock (4x12.5) So w

Cash so

Core2
Ablm
Nosmal. Case 3
10 10 10 10 10

10 10 18 10 10
Don't lost = normal lou

jusikes
I on't lost: Ab. Loss All units ase saved

50
-
(12.5-
50
:
(12.5
5 -
1 5 -
1

Stock (5x12.5) 62.5

-50 56E
Cah 50
12.5
Ab gain.
Stock (3x12.5) 37.5

Ablon Dx(2.5) 12.5- Std

function you canticit
Cash 58
Cost incussed
=ClU

Input-HC.
 Sage #1 No
op wip No (1. WIp

..
schedule 2) Cost pes 3) Cost
i) Quantity unit
Accou

Input 12,000 Cost incessed: "240,000 Stock (10,000 x 24) 240,000

2n-on
240,000
a
20
Completed 10,000 Psocen
-
"
2
12000

2.
N lose.
W
cost stow 240,000
In 240,000. 200,000
10,000 - put but put
Cost ProC Ak 240,000

Eup.OIP ( Input-N.Lon Cah 270,000

stor 270,000

12000
10000
L
good x 10 = 200,000
ProCen All 270,000
&
Normal. X10 40,000 U

2,000 102

200,000 40,000 + =
240,000 = 24

10,000

EDQty schedule Cost

& pes vit 3 Cost Acc
fou
& 12,500
Input 40,000 unit Material 412,500 Stock (32,500 x 25)
Conv. Cost 400,000
32,500 unit & 12,500 Procen.
Output
NLoss 7,500 Unite 812500 Mat or
-:1254
412500
7
stock 812.5
40,000 10,000 -
7500 C

① Material 412,500
All
cour. Cost Al 400,000
Conn 812500
I

② Procen All &12,500

Mat 412,500
CC 400,000

③ Stock 812,500
Procm 812,500

Con2 Ab.lon
-

Stage #1 -> Nosmal +

Quantity schedule. a
clu
-
③ Git As
you
Colt= 240,000
"Stoc(9000x24 216,000
Input 12,000
w
Ablon
240,000. 26.678 (1000 x 24) 24,000
&

9000. 20,000
Completed 9,000 I

N. Lok. 2,000 240,000

-
24 Proven AlL
12000 2000
Ab. lose 1,000
-

Colt 240,000 stock 216,000

12,000 Ablm 24,000
E

Journal Entsie.

Poocen 240,000
Cah 240,000

Stock (B1s) 216,000

Ab Lon (PIC) 24,000
Proc 240,000
O
Quantity Schedule. 2 Cost per unit 3 ColtAcc
for
Material 239,190 Stock (21,750 x 17.3326) 371,784
Input 25,000
26,866
2C 159.460 Ablon (1550 x 17.3326)
Completed 21,450 -
398,658 398,650
->

N. C02 2,000

Ab. Com 1,550 398,650..17.3726 Proce

25000 2000 Stock 371.784
25,000 Mat 239,190
-

26,866
-

159.460 Abla (12)

-

CC

Material. 239.190
CC 159,460
Cah 398,650

Process 398,650
Material 239.190

x 159.460

stock (BIS) 371,784

AbLon (PIL) 26,66b
proce 398,656

cals ->
stages ->
Abgain

Otyschedule 2 Cost Acc

you
3 Cost
Accor
Input 12,000
240,000
= 24 Stock (11,000 x 24) 264,000
11,000 12000 2000
(24,000)
-

Completed Abgain (1000 x 24)

-

Lon
N 2000
I 240,000
Abgai (1,000) 1,000 Proce
Input 240,000 stor 264000
Procen Al

Cash
240,000

240,000
Abja: 24000
-

Stock. 264000

proce 264,000
24000
Proce
Coxt Abgai(PIC)24,000
- Clu
Input - Ma

⑦ Data

Input 14,000 unit

Normal (on 10%

Actual olp: 13,000 unite

Cost Material
255,7003
CC 109,620

Oty schedule ③ Cuil

3 Cost
Accou
Input 14000 Stou (13,000 x 29) 377000
365,400:
1
I

29 (1600)
Completed 13,000 14000 1400 -
Abgui (400x29)
N. Lou 1,400 365,400
I

Abgai (400) 1000 14,000

 Poom Material 255,788

May 255,780 ac 109,620

Stoa 377000
Cash 3 65,400
22 109,620
Abgu: 11,600
ProCm All 365,400

Mat 255,780
Cc 109.620

Stou. 377000

Procen 377,000

Procu 11,600
Abja:(P1C) 11,600
 cost pecunt >
Cost
=
C
Input-NL
Can4 Staget1

scrap value

loss unt
proceed from

Normal Loss.

b. Lok.
A
it
Seller
Bearat
it

Impact of Scrap value

nosmal lon Ab.lon

↓,
Affects Produces. (PI)
Y
.

(PIC).
· Nosmal loss incs. (10-
so will
buy it produces

of Scrapwah
Net xxx
so
ScsapWake
·
will reduce (l

Cost -

NCSU%: CIVY-
Input-NL

① Quantity Cost 1 unit

CoA
8220,000.
3
Schedule 2

Input 12,000
240,000
20,000.22 Stock (10,000 22) 220,000
-

completed 10,000 12000 - 2000

↑
N. lose 2,000 2000 x 10: 20,000
ToCen All

12,000 Colt Cash (Nc(r) 20,000

= 240,000
Normal loss 4 Clu stock. 220,000
↳ Clu
swof all

Poocen 240,000
Can 240,000

Cah-NCS 20,000
Broom 20,000
Stow 220,000
Prom 220,000

# &
40,000 Quantity schedule cost (vit
I
Input
85%
Yield
Input 10,000 2.115,000 -
6,000 x
12.5: 60
NLon 15%
40,000 -
6,000
Cost incessed R: 34000
2,115,000
=

Output S

suof losses:1: 12.5

unit NLose 8,005
③Cost Accoz (R: 2040,000)
40,000
= Stone (34000 60) x 2,000,000
Psocm
Colt 2,115,000 Cash 5,000
=

stocl 2,040,000
can 5
stage #
↑
Quantity Schedule 2 cost unt 3 Colt All
you
12,000
Input 2000"xTo
240,000 stock
(9,000 x 22) 190,000
-

22
=

completed 9,000
Ablog1000 22)
1 2,000 -
2000..

Mhoss 2,000 x 22,000

Ab loss 1,000 Sv: 3000 x 10 =

30,000 SU. (10,000) 12,000

12,000 210,000
1000x1
2000 x 10

20,000 10,000 Pookn

"cost per *PIL cost 240,000 Cah-NUsa 20,000

Unit 000U
Cash-Absu

stock. 198000
240,000 -
3,000 x 10:1210,000 Ablm-PIC
- ou
-

Journal Entries. Mb lon 22,000

v

Ab.lon <

Proce 240,000 Proc 22,000 2Ch. 10,000 r

Canh 240,000 PIC 12,000

stoc 198,000
Proce 198,000

Cach-N2 Sc. 20,000

Reduce
proce 20,000 Suof Nc -> clu

As lon
procm
22,000
SuogAble-> Reduce produces
22,000 Ab. loss

Cach 10,000
PIC 12,000
Ab loss 22,000

2000,000 - 6210x48 =
17,500,000

5000 + 1250: 6.250

N2 +Ab.los

Quantity schedule ② Cost (unit

25,000
#uput
2,000,000 -
5,000 x
48=R:Od/unit
completed 18,750 25,000 - 5000
N. Loss (20%) 5,000
Cost
Jou
e
b.
# Coy 1258 Acc

Stock (18,750x88) 1,650,000

20 Able (1250x88) 110,000
SU. (1250 x 48) (60,000) 50,000

1,700,000
 Can6
Stage

Quantity Schedule ② Cost I unit

Input 12,000
-

240,000 -
2000 x 10
1.22.
=

completed 11,200 12,000 - 2000

N Lon 2,000

Abgain. (1,200 800

Recovery benefit given to Cutome. 2000 x 16

20,000
12,000
(800 (8000)
E
Actual Los Sv. x
10) L

Benyit to to Centures -
Extra
12000
③ Cost
Accfoz
Stock (11,200 22) x 246.400 =

process
Abgain. (1200 x 22) 26400 (14400) I

opent of abnoina gai (12000)

Not
298. 222,000
I

to
be custo
to a

1200x
10 - .

12x1200 =
19.0

Procen 240,000
Cash 240,000

Stoc 246,400
Cash 8,000
Prom 254.400
Procen 14,400
Ab. 1,400
gain

1940,000
Pooch Acc
a Procen
Mat 650,000" stock. 1976.65
Las 410,000 Cash 42,000
-
OH 880,000
Abgain. 78,857

Quantity Schedule 2 cost 1 unit

16,000
Input 1940,000 -

2,000 x 35:133.57
Completed 14,000 16,000 -
2000 1940,000
NLoss 2,000 (42,000) 1200x35

(800) 3 Cost
Asga 1200 Acc
for 1,898,000
16,000 Stock (4800 x 133.57) 1976.85(
Abgain. (800 x 133.57) 106.85
-
-

o
Cost (800 x35) (2000) (70.85t)
1.890,000
 Stage 2-> Prozen with CI.WIP

stage of completion
Mat: lump som

I
box
a M
uniformly
cc-
100%
0%

Mat 100% 100% 100%

Cc0% 60). 100%

b
A ⑪ N N

OY 60). 90% 100;

Mat 80% Boy.

100;
80%.
Cc0Y 100;
60% 90%

%. 9. 100%

a Mat at Start

Mat 100% 100% 100%

xC 60% 90% 100%

b Mat at end 100;

Mat 0% 0 .

80% 90% 100%

2C

Boy. Mat at stit

-

20% at 70% stage

Mat 80% 100%. 100%

Ca 60%. 90% 100%

Concept of Eg. Pood unit

Don
do completed
100 10.
20 50%Empl 90
=

100%
18000 18,000
4000 95% 3,800
25,000
3,000 45% 1,350

23.150

D
=

Dafer 8000x
I
~Matt toi Saleable

Input 10,000 100%. 50%. CIWIP

2,000

Mat 200,000 Mat is into at start of

37,000:5
·

ProCen
171,000 10,000

d200
2C

ac is incessed
uniformly N

'
Quantity Schedule. 2 Colt Pesunit

Input 10,000
⑰ ⑫
Costele Cost Compl CWIP EPU CIU
·Nat 100%
Completed -8,000 CC
-

100%. Mat 200,000 8,000 20000 10,000 20

--
F

- v
D.
WIP 2,000 Mat 100% -
2C 171,000 8,000 1000 9,000 19

10,000
ac 371,000 cost poson't 3
2
③ Cost Acc
Joz Proce
Material 200,000
Compl (8000 x 39) 312,000
-
May 200,000 Compl 312,000 Cah 200,000
CC 171,000 (C 59,000
CWIP CC 171,000
Can 171,000
Mat (2000
20). x
59,000 37,000 371000
, C

xc(1000 x(9) Proce

=
371000

37,000
I

Mad 200,000
CC 171,000

Stock 312,000
CWIP 59,000
Prom 371,000

for
Accounting
Icom is
B

312,000

8000 PPC
10,000 <8000 -> Input

x.op 2,000 mat u

v
xC

Oschedule · Mat into at end

·PPC into at Stot
Received of
mat: 84000 (atend)
Completed -
7,000
PPC
mat
100%
100].
xc=75000 (rnijusm).
x100
PPC: 312,000 (at sts +)
-1,000 PPC 100;
CWIP mat 0 Y. w
1000 out 50%

2C 50%w
8,00 U

2 Cost (unit
Output
-

Cost Acc.
3
Joz
Cost elem Cost Compl CWIP E.p. U CIU

PPC 312,000 7000I

1,000. 8,000 39 Completed (7000x61) 427,000
Material 84,000 7,000 0 7,000 12 CWIP
CC 75,000 7,000 500. 7500
-
10 PPC (1000 x 3a)
471,000 Cost ( un't 61
-
Mat (0x12) 44,000
(500 10)
=
c x
Y7
Process. ,000
PPC 312000 Stow 427,000 · PPC 312,000
man 84,000 cc 44,000 Cash 312,000

acE5.o.
· Mat 84000
-

75,000
E800
ac

Cash. 159,000

·Process 471,000
PPC 312000

Mat 84,000
CL 75,000
StoCK. 427000
CI.WIP 44,000
Procen 471,000
 Pocen Corting stage
3

Process with
opening aclosing. WIp

Do
4.1

20,000 Cost
Input unit incussed

Max -> R:300,000

·Completed CWlp" 2) -> R:147,200
16,0000 7000r
v

Stage ample->G0YConverted.
·

of

Material at
is start.
introduced

Solution

① Cty schedule ② Cost 1 unit

20,000
Input
Empli
-

Costele cost EPU <V

CWIR
100k
mat
(a1000
completed 16,000
- a
v
Material 300,000 16,000 4,000" 20,000 15.00
Mat 100%
4,000 LxE%
⑥

<W1p ~
CC 177,200 16,000 2,400 18700 8.00
&

20,000 447,200
-
23.00
-

③ C1
As
you
Proce
B
Completed (16,000 x25.00) 368,000
Mat300,000 comple 368000 -

177,200 CW1p
x
(IW1 7
20v

Top wIp matchoooxi

50,000.Ne
⑰y schedule
- 60,000
opwip 57000 ( 200
Mat

CC
19,200 by
started 18,000,
Mat 336,000

0,000in
22,000
=

17,000 22:177,525
completed
v. =

CWIp 2.5,000
22,000 mat 100%
<C:50%
-

2.
4B
unit
↑

Costele b10GTNewEtTOFaTGA Compl. (WIP EPU /

n
Mat 60,000336,000 396,000 17000" 5,00022,000 18 u

17000
66725
8.552
-

C2 19,200 197,525 2500 19,500

26.55
=

③ Cost Acc
for
~ Completed (17000x26.55) 451.350
UCWlp mat(5000 x 10) 90,000 -
x(2500x855)213757 H75/563,725
 Poocn
b18379,200 compl 451,350
Maf 336,000 111,355 -
(Wlp

5377.52
cc

52.725

>1. Comple
-

-
v
B18.3st
>
->0P New
50,000
220,000
-

2 v
v

1
Quantity
schedule.
②
100%
1 unit
Cot

opmoip 50,000 ( mat 50%

New input 250,000 Costels blfst New Cost TotalCompl. CWp EPU CLU

300,000 Max 750,0005,250,0006,000,000 270,000 30,000 300,000 20

op 50,000
- -

Completed "270,000
~
-> 16
1 New 220,000
CC 348,7507331,2507680,000 270,00022,500 -
292,500

30.oon(x
~

<wIp 1098750 10,600,000 36

mat 100%
e

CostAcc
you Poocm

118C01 1098750 Comple 9720,000

Completed (270,000x36)
1

9.720,000 max 5,250,000 (W1p 960,000

&
w/p ac 4.331.258
Mat
30,000 (20) x
960,000
xc(22,500 16)
-
x

10,00,000
 Cty
schedule
(mat so:
~ -
N

Op wIp 500
-
-
v
500
-

New. 2,500
~

50
- 185
↳ "Comple -2350.

CWlp -650(mat 100%ne

3,000

- - ② cost per unit

NewEtTotallest
u
---
CE. BIOCTF Comp CWID EPO CLU

Mat 6,000 45,000

&
51000·
2358
1
6503,000 17.000
3,000 33.005 520 2,878 11.50-
vcc
30005 2.350
28.5
-

Unit 2054

-
OP WIP. E 60% 300x 3,000 x
500 1,440%

200

New
2500
1
1850

T (
100% 1.850
30005
1
~ 1850

45000
S

65017.520.
-
: 30
8300
- 51000
↑

<y 1.
- 2870
33,065

15
⑱01
City schedule

op wIp 500 (mat 100;)

New 2500
3,000

Completed ⑭Pood"
-

500 (Mat0Y.
:JoonoPo
40%-
22

1850
(Mat 100%of
2.350
<WIP 350-

3,000
(mat100;( Costun'twill be based on

Cost vit is Cussent 15. Cost

-
2

Compl
- 2) Cy. Output
CE C. Gst New EPU Culp
op CWIP Ciu
Started A

Mat 45000 -
11850 65- 2500 18 Partially comp
opwl Newing
L

<c 30005 200. 1856 520 2570 11.675 >ut Rins

v
completed
L

gully completed
-

29.675
thi
y.. this
yo
 ② cost per unit

c.gio. minocin. . pric ion

v
N
↑

u
of a

in
*
* 28.5
->

2 Cost vit
w

11.6752

29.675

JO
-Acc eAcc
for
comp! (2350x28.5) 66975%b16H(6000 3000)
+
90002

x(200x1555)a535
Mat
-

CWIP
-

mat (650XA
lo N
11.335
170s0 29.675) 54,900
-
New (1850 x

84005 66.2352

(w/P(650Xi8)1(700
=

11.675):5070
Process (WA)
x(520 x
listo
1
11J. 9,000 stoc 66.975 Pocen (F1F0)
45000 <W/p 17030 9000
mat big ston 66,235
30005
↓

< Mat 75000 dwlp

/
17770
[

CC 30005
↓
&
City schedule (WA) Myschedule (FIFA)
u
n

Op wIP 200
OpWIP 200
<

Started 1,000 New 1000

Input
1200
1
1200

Compl
[compl -
X
1050
⑧
(mn50:e Esomop L 0%
150
+
v 2000 mat
2220%.
~From 850.
100
New
(mat100..
1058
~ CWI 15. (mat.o.
2 Cos10nt (WAS) 1200
1

Cost Ele B18CHC.G1tTotalloCompl CWIP Epu CI

Mat 1,000 5600 6,600 1050 150

..
1200 5.5

90 4.25
ac 670 4205 4845
L
1050 2
1140
↑

9.75
11.445
Cos/unit (F150)
I
=
2

completed
C.Gst Clu

15.57.5)
cat ele Foomop FsouNer CWIp

Mat 5600" -

x850v
-> No Ly Output
·

↓< 4205 40
v
850 900 980
9.891

③ Cost G1Acyo
Accor ⑤

compl. (1050 x9.75) 10.238. Comple

CIWIP-
(C) owIP

mat (150 5.5in x

31 31t(1000 670) 1640
+

20
x(40x4.29))-
Mat
172
11.446
>
1812
Pooch (WA) (b) New Wit
(850 9.891)
x 8407
-10,219
bifust 1640 ston 10238

Mat5,600 (IW/P 1208 CWIP

2, 7205
mat(150x5.S)do122s
1445
↓
Pooch (WA)

bifust 1640 ston 10,219

Mat5,600 (I 1,226
2, 7205
Presentation Nosmal loss
of
① Cty
schedule ② Gst1 unit 3 Cost Acc
you
Input1000 143
R:100,000
125 =↑
ston. (800 125)
x 100,000
N2ar
Completed
=

200
-

&00
x

N. Loss 200 700

R: 100,000 stone (800 180) 800,000

1000 =100
Y
x

1000 Nosmal Ion. 100,000

=
200,000
100
↳ 200 x
800 200
+

C0s+ Ont= Cost ↑

Input-NC:Goodolp+Ab.k.
cost

goodop.+la.
700 + 100
 1500
v
60%
↑ ↑

r
I
I I

5
10,000 6500-

5
X
&

⑳ -

↑
⑩
⑥
o
v

5 v
8500
Tasted

Qty
schedule
② Suit
10,000
Input
v
6500
Completed 1

<Wlp
v 1500 (Mat00:(
x
Ic
NCon 1200
(mat 100%
<9
100% (
Abla-

000(ma+1and (

f50P.NZz.AbioE.o
=

circo
Cc 8.2

=>

X
Costele cost Compl. CIWIP Nhou Ablon EPU Clu

Mat 6500 1500" 8008d00

10
-

88,000
ac 77,080 6,500 900 X 200
9,200

CostAcc
for CO1
AccJM 19.
·

Compl. (6500 x11 110,500 Co-pl. (6500 19.7)x -

126,100
v 20,400
NCow
-

130,900

CWI

colP100s
·

10):
S 7,300
( 13200
mat S900x9.4)846023460
1500 x
15,000
S

ast

Elon Able
(800 17)
·

x 13,600 19.3
800 x 15,520
 Psocon
1

Mat 88,000 126,100

comple
ca 77080 (WIP 23.460
S

Ablon 15.520
- >

15000 155,000
-

Steyschedule
25,000
Input
-

Completed -
20,000" cE cost compl (WI Abla EPU Clu
-
CW/P 23,000 Mat -376,000 20,000 3,000 500 23,500
v
16.00
NLos 1,500x 20,000 1200 21,700
CL 260,700
w &
508 12.00
-
Abloss 500
28.00
20,000
-

Cost
Asafo
Process
①Completed (20,000x20) 560,000 mat 376,000 completed 560,000

260,700 62,700
② CWIP CC <1w1P
Mat(3,000 x 16) 78000 Able 14,000
ac (1200 x 12) 14,700 62,700
636, Yo0 636,700
③ Aslan
(0 +
(500x28) 17,000
636,700
-
 Impactof Scrap wake
of
loba.

I
Qty schedule.
5
70,000
Input
~
p

M
·
Completed 25,000

↳
7000 Mat 100%
n
2 <W/P
12 50%
M
x NLon 3,800
~
Ab. Con 1,200
·
70,000
SLOJN1
3.800 4
x
115.200
=

-,
800 15,200:651,600
cost
-

2
per Unit

Costelem Cost Compl. CWIP Abloss EPU Clu.

Mat 651,600 28,000 7,000. 1200 36,200 1800

⑥

3,500" 1200 32,700 11.00

2C 359,70028,000 S

V v L 29.0r
=

Cost
Accor
1.
Completed (20000 x 29) 812,000
summary
2. CWIP
18)
(3,500x11)
mat 7000 x 126,000 a NL Column. Do notincoop
:

x 38,500 167,500 in EPU so

that
3. Ablas cost unitis increased.
Cost
(1200x29) 37,800
⑥ NCSU:Daduct
from
v it Maticials

(7,800)
SVOJAbla (1200x4) 30,000 so thatCIV is reduced.

1.006.500
POLen All ② Ab lon Column.Incorp Ablon in

mat 666,000 completed 812,000 EPU so thatClu

Cc 359,700 CW1 167,500 is increased

not deto

Ablm-Net 30,000 Ab loss

15,200 Deductit the

can.- NCSU 7
SU0JA. Ion: form
Cah-Absv. 7800 Value As. Ion
1

of
1026,500
appearing AccfO2.
1026,500 in G1
= =
#

- w v

->

u v

Oty schedul

(
Mat 100%.
OPWIP 4000 ca 60%.
1

New 17,000
21000
-

v
Completed 15,000 SV0JNC:1500 1.5 x

x
C1w/p 3,500.
12.250
N. Loss 1,500
to be deducted
~ Ab loss 1,000

21,000
room material.

->
-

97,250 -
2250
2 Costpas out

CE
DIGH2.COH T.COMCompl CWlP Abio EPO CIU.

117,000 3,500 19500 6.00

Mar22,000
95,000 15,000 1,000
↑

9,000 65,50074,500 2625v 1,000 18625 4.00

x 15,000 1

v
1
v 10.00

CostAccjO2
POOCOR ALL
1.
Completed (15000 x10) 150,000
bigcock 31,000 Empl 150,000
Mat 97,250 CWIP 31,500
a. 65,500 Ablen-Net 8,500
CWIP Cc

Y
(1500x(5)
I
mat 3500 x 5 21,000 Cach-Swali 2,250
x 2,625x7 10,500 31508 Cah-AbSU 1500 (1000 x 1.5)
193,750
3. Ab.loss (1000 x 10) 10,000 = 193750
Sv (1000 x 1.5) (1500) 8500
1

190,000
-