Professional Documents
Culture Documents
To Input
XXX
XXX
XXX
To Materials
XXX
To Labour
XXX
To Overheads
XXX
By Normal
loss
By
Abnormal
XX
X
XXX XXX
*
[scra
p
rate]
XX
X
XXX
Loss**
By Process
II (output)
(transferred)
By Abnormal
Gain **
XX
X
XXX
XXX
XX
X
XXX
XXX
xxx
XXX
XXX
XXX
Normal output
To Process I
Normal output
XXX
XXX
XXX
To Materials
XXX
To Labour
XXX
To Overheads
XXX
By Normal
loss
By
Abnormal
XXX
*
[scra
p
rate]
XXX
XX
X
XXX
Loss**
By Process
III (output)
(transferred)
By Abnormal
Gain **
XX
X
XX
X
XXX
XXX
XX
X
XXX
XXX
xxx
XXX
XXX
XXX
PROCESS II A/C
To Process - II
XXX
XXX
To Materials
V
XXX
XXX
To Labour
XXX
To Overheads
XXX
By Normal
loss
By
Abnormal
XXX
*
[scra
p
rate]
XXX
XXX
xx
x
XX
X
XXX
XXX
XX
X
XXX
XXX
xxx
XXX
XXX
XXX
Loss**
By Finished
Goods
By Abnormal
Gain **
XX
X
PROCESS COSTING :
Process costing is that method of operation
costing which is used to ascertain the cost of output at each
stage of production.
QUESTION 2
What is meant by normal loss and abnormal loss in process
costing ?
ANSWERS :
NORMAL LOSS : Normal Loss is unavoidable during the course
of production process. It is mainly due to evaporation ,
shirkage etc. The cost of Normal Loss should be absorbed by
other units produced. The process a\c is credited with the
realisable value of normal loss, if any.
ABNORMAL LOSS : Abnormal Loss is avoidable loss during the
course of production process. It may arise due to negligence of
worker, fire etc. The cost of abnormal loss is not absorbed by
other units produced. Therefore the process a\c is credited and
abnormal loss is debited with full amount of loss. After
considering realisable value of Abnormal Loss , the balance
transferred to costing P & L a\c.
QUESTION - 3
What are the main features of process costing ?
ANSWERS :
FEATURES OF PROCESS COSTING
xxx
Garage rent
xxx
Insurance
xxx
Vehicle Taxes
xxx
Supervision
xxx
xxx
Road License
xxx
xxx
xxx
xxx
Depreciation
xxx
xxx
xxx
xxx
Total Expenses
Total Expense
Total Kms.
Total Expenses
QUESTION - 2
What is Transport Costing ?
ANSWERS :
TRANSPORT COSTING : Transport Cost is the cost providing a
service to passengers. It is applicable Transport organization to
measure passengers kilometer , etc.
1.
2.
3.
4.
Contract Price
Contract Period
Work in Progress
(a)
Work Certified
(b) Work Uncertified
Cash received
Cash Received
Percentage on Work
Dr.
Cr.
To Materials
xxx
To Labour
(+) O/s. Labour
To Expenses
xxx
xxx
xxx
To General Overhead
xxx
(ii)Work uncertified
xxx
By Material Return
By Profit & Loss a/c
xxx
xxx
(i)Work certified
To plant issued
By Work in
progress:
xxx
xxx
xxx
xxx
xxx
xxx
Material Lost
Plant Lost
By Plant Return
Less: Depreciation
xxx
xxx
xxx
By Closing Plant :
Plant issued
xxx
xxx
xxx
(-) Depreciation
xxx
xxx
xxx
xxx
By Closing Material
xxx
xxx
To Notional Profit
[B/F]
xxx
xxx
Dr.
To Balance c/d
xxx
CONTRACT
xxx
xxx
ACCOUNT
xxx
By Balance b/d
Cr.
xxx
xxx
xxx
Assets
xxx
Work in Progress :
xxx
xxx
(-)Plant Lost
Work certified
xxx
Work Uncertified
xxx
xxx
xxx
xxx
Outstanding
Expenses
xxx
xxx
(-) General Reserve
xxx
xxx
xxx
Closing Material
[including Return]
xxx
Closing Plant
[including Return]
xxx
xxx
xxx
(1)
If work certified is Less than th of
contract price (or) equal to th of
NIL
contract price.
(2)
If work certified is more than th but
1/3 of notional Profit
Less than of contract price.
=>
=>
Particulars
(3)
If work certified is equal to (or)
More than of contract price.
=> 2/3 x Notional profit x
Cash
Received
Work Received
(4)
If contract is completed.
=> Entire amount transferred to P&L a/c
xxx
xxx
xxx
xxx
xxx
xxx
PRIME COST
Factory Overhead [Quotation Units x Per Unit
Rate ]
xxx
xxx
xxx
FACTORY COST
Administration Overhead
[Quotation Units x Per Units Rate]
xxx
xxx
COST OF PRODUCTION
COST OF SALES
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
20/100 ]
Quotation Price / Tender Price
xxx
xxx
Prime cost
xxx
sheet
xxx
xxx
Xxx
Factory cost in previous cost sheet
]
Cost of Production
x 100
xxx
xxx
xxx
xxx
Profit
Quotation Price
xxx
Labour
xxx
Prime cost
xxx
xxx
Factory cost
Administrative Overhead [ Refer : Note ]
xxx
Cost of production
Less : Sale of scrap ( if any )
xxx
xxx
xxx
xxx
xxx
xx
x
Add : Profit
Job Cost
xxx
xxx
(ii)
E.B.O. =
2 US
C
E.B.Q.
Monthly Demand
x 30 days = xxx days