#P1 PROCESS COSTING Process Costing is = method of costing Used in inductvies whee the material has to pass though too or move processes for being comerted into o Final PRoducr. ieput put, Process T Paocess T Process Cost of each process, Cian ~ Mateviak Organisation is interested in finding out COST of each PROCESS = Labour Cost v A Separate Ale for each processes is opened £ Expendifuve pertaining to a process is charged to that Process Alc - ~ Divect Expenses = Production oft Process T ale Process T Alc PRocess Taye@ Types oF Questions in Process Costing Process Ale ® WIP - Equivalent Units @ Inter - Process - With Stor Ale ~Statement of? Equivalent Units Profit ~ Without Stock Ale ~ Statement of Cost Pex Unit EoNowwals Lees Al ~ Statement of Cost Appovtomnmnatt = Abnormal Loss /lrain Ale ~ Process Ale B.com /aga [BAF Exams CA INTER EXAMCoFFEE PRODUCTION outa PLANTING [ HARVESTING = a MILLING, ws ROASTING GRINDING JIov. Format Process Zale a ce Pockiwalav faty [ete] | Paticulavs Big Wate | FE _| Some hy Sold immediately Material V1] 7 By Novmal Loss wal e| — a ¢ “To Labour [By Renmin Koei 2 | ov |e pescess WF Process a is wok Profit is Poh “ Overheads ~ | By Bane (5014 immeay) x fv | ati — To Other Expenses ~ [By Process ome |v ly] ~ ue v To Abnormal Gain v\7 a Take. just Take Sales i ie By Finished Stoce ae| “| | ~ Cait as (lara To Profit on Sale Y + Process Ale Process Ale (Seid we diately) Fi Record Profit on Ow Side xx | voc] 3 xx [x [ee oP Process Ale. Lets Undevstaud Movmal Loss £ Alonovmel Loss/ Gain Alonormal \nput coors Expected Oultt — retual Output Remarks aa yo uals Sz Ww ee oo 3 Unis Exba Loss Expected in begwining’ Alnored wheel based on eeu: A Cain Past History 2 2 Unis Extra GainVALUATION oF Process ITEms Loss Gain ee ae | L eae Novenal, Alonowmal Alorovmal, Trans fey 4o ‘Sold leneciakl Loss Loss Goin Next Process v Value at fs Process a Sevap Valued at Cost Price Prot Cantey 2 7 < ves No Tonk Or.» —_ slovmal. Loss i ’ Coue Pe = Process ale, Sevap Value ab Ue ae “otal Unite Normal, Loss Saks Rece Cozt an Input in Poses a an Process Fue Me Ont: : Process v 1 Record Poke Profit with ow De. Side nok appear oP Brocess wn Process Ale Ale ; \ Ve would be = Costing Pa AleFORMAT - Normal , AgNeRMAL 4, ACNORMAL bss le Loss Ale Gaw Ale Normal cose ale QIR IE OR Is TO Process T lvl yl vy | By Gant ae |v|v| ~ _ cess ) oa le Oy tne ae fly | ABNORMAL GAIN Ale (Process 1) ale le Tayele (se = Prasad Noval Los|v] “| 7] ey Recess [Yl tee Cave ay Bp Perea. LL A| A | 0 Costing PL 3 x |= foxx [= Prone, (Calerga) pe awe seb toes AgwoRmaL Loss Al AIF in process FGNORMAL GAIN is there then ae Te aet= iE cal ease) elem ee we cant sell entive quantity oP Negmar Loss (Gold m Seva) We con only sell (NE Qty - AG oy) By costing PIL ve tk NL (Oo Abwormol (Golancing Pig.) ie sx as at Cain «|x [rox % [e_peoe| = Aero 2 5 9 *Rechisable value of loss wll be same fr normal loss oe St well abnovmah tors unless diPlexent wakes ove givers © 3 odie: Sill! Ge sale! im Noval Less Ate#2 Pre ICESS OSTING Probes Ilvstvation 2 - ICAL dy Mater Ae es e ce ssen it yeh -process_is_tyeated a the xa cmmtovial of the next pace ss to s a a Para -tronsPevyed 40 finished _ ctock. 5 ar cer = Process TE Pencess —Materi be 40,000 10,000 209 Late 6,000 4,000 1,000 MonuPackuring OjH 0,000 10,000, 15,000. ove beens ed Reeves. = how -pracessing the output oP each process _ic_as_under Proces: Outaut Nowaal 1 Process =T_ 60 vais Process - Te 9.0 wets Process - TE B,000_onits loz No Stace of madevials oy of suork-w-precers was led at He end. CALCULATE the cost of the Finished articles.Solution_+- paperarid Date: / 1 Peocess =I _ Account Pevtilars @ [RR |< | Portela fe[a| = I> Matevial |io.0v0|_ 4 | 40,000 - — I Lato = |= | 6,000 f 1 Manufackaiy| — | - | 10,000 a Ott by Abnormal Lors | SO |S.7u2] 286 Ale 4 ) By Process CPL Mikal eee ® oy @ Complete Procere Ale Later OM eax © © Ci step Statement cb Cost Appovkonment a © Sih Spcibe, Pat «Proceed = (Gy Uh «@)) + (Ce Usb « Lx) Chong wih = Pbrorah Lory =