Page 273 - DCOM202_COST_ACCOUNTING_I

Unit 13: Normal Wastage, Abnormal Loss and Abnormal Gain

Solution: Notes

Crushing Process Account
Amount Amount
Particulars Tons Particulars Tons
(`) (`)
To Cost of kernels 100 45,000 By Cake sales 40 3,000
“ Wages 1,600 “ Sundry sales -- 180
“ power and steam 240 “ Loss in weight 5 --
“ Repairs and stores 80 “ Transfer of crude oil to 55 44,140
“ Rent and taxes 100 refining process
“ Sundry works expenses 40
“ Office on cost 260
100 47,320 100 47,320
Refining Process Account

Amount Amount
Particulars Tons Particulars Tons
(`) (`)
To Crushing process 55 44,100 By Sundry sales 4 180
“ Sundry materials 380 “ Loss in weight 1 --
“ Wages 1,180 “ Cost of refined oil 50 46,200
“ power and steam 200 transferred to Finishing
process
“ Rent and taxes 150
“ Sundry works expenses 50
“ Office on cost 280
55 46,380 55 46,380

Finishing Process Account
Amount Amount
Particulars Tons Particulars Tons
(`) (`)
To Refining process 50 46,200 By Sundry sales 2 220
“ Wages 1,175 “ Cost of Finishing 48 52,000
“ Barrels 4,205
“ power and steam 300
“ Rent and taxes 120
“ Sundry works expenses 70
“ Office on cost 150
50 52,220 50 52,220

Example: In an Industry, the output passes through three processes to completion i.e.,
Crushing, Refining and Finishing. The details are given below for the month of March, 2006:
Crushing (`) Refining (`) Finishing (`)

Wages 15,000 12,000 10,000
power 6,000 5,000 3,000
Steam 2,000 1,000 500
Other expenses 3,000 2,000 500

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