Page 268 - DCOM202_COST_ACCOUNTING_I

Cost Accounting – I

Notes processes
I (`) II (`) III (`)

Direct wages 6,400 12,000 29,250
Machine expenses 3,600 3,000 3,600
Factory on cost 2,000 2,250 2,400
Raw materials consumed 24,000 — —
production (Gross) in units 37,000 — —

Wastage in units 1,000 1,500 500
Stock 1st June, 2007 (in units) 4,000 16,500
Stock 30th June, 2007 (in units) 1,000 5,500
Solution:

Process Account I

Amount Amount
Particulars Units (`) Particulars Units (`)
(`) (`)
To Raw materials 37,000 24,000 By Wastage 1,000 --
To Direct wages 6,400 By Transfer to process II 36,000 36,000
To Machine expenses 3,600 (cost ` 1 per unit)
To Factory on cost 2,000
37,000 36,000 37,000 36,000

Process Account II

Amount Amount
Particulars Units (`) Particulars Units (`)
(`) (`)
To Transferred from 36,000 36,000 By Wastage 1,500 --
process I By Transfer to process III 37,500 56,250
st
To Stock 1 June 2007 4,000 4,000 (`1.50 per unit)
To Direct wages 12,000 By Stock on 30 June 2007 (@ 1,000 1,000
To Machine expenses 3,000 ` 1 per unit)
To Factory on cost 2,250
40,000 57,250 40,000 57,250

Process Account III
Amount Units Amount
Particulars Units (`) Particulars
(`) (`) (`)
To Stock 1 June 2007 16,500 24,750 By Wastage 500 --
st
To Transferred from 37,500 56,250 By Stock on 30 June 2007 5,500 8,250
th
process II @` 1.50
To Direct wages 29,250 per unit
To Machine expenses 3,600 By Finished goods a/c (cost 48,000 1,08,000
To Factory on cost 2,400 ` 2.25 per units)
54,000 1,16,250 54,000 1,16,250

262 LOVELY PROFESSIONAL UNIVERSITY