Page 274 - DCOM202_COST_ACCOUNTING_I

Cost Accounting – I

Notes Copra purchased 3,000 kg costing ` 3,00,000. Crude oil produced 2,500 kg, refined oil 1,800 kg,
and finishing oil 1,760 kg.
500 kg crude oil was sold at cost plus 20% in Crushing process. Copra residue 300 kg sold for `
10,000 and sacks sold for ` 1,000. Wastage of 100 kg of Refining process sold for ` 800. Casks cost
` 3,000. Oil stored in casks sold for ` 200 per kg. Prepare necessary accounts of process.
Solution:

Crushing Process Account
Amount Amount
Particulars Kg Particulars Kg
(`) (`)
To Copra purchased 3,000 3,00,000 By Loss in weight 200 —
“ Wages 15,000 “ Copra residue sold 300 10,000
“ Power 6,000 “ Sacks sold 1,000
“ Steam 2,000 “ Crude oil sold (Cost 500 75,600
“ Other expenses 3,000 ` 63,000 Plus 20% Profit
12,600)
“ Profit and Loss a/c 12,600
(Profit on crude oil sold) [(3,15,000 / 2,500) x 500]
“ Refining Process a/c 2,000 2,52,000
(cost per kg ` 126)
3,000 3,38,600 3,000 3,38,600
Refining Process Account

Amount Amount
Particulars kg Particulars kg
(`) (`)
To Crushing process a/c 2,000 2,52,000 By Loss in weight 100 --
(Output recd. @` 126)
“ Wastage sold 100 800
“ Wages 12,000 “ Finishing process a/c 1,800 2,71,200
“ Power 5,000 (Output transferred, cost
per kg ` 105.67)
“ Steam 1,000
“ Other expenses 2,000
2,000 2,72,000 2,000 2,72,000

Finishing Process Account

Amount Amount
Particulars kg Particulars kg
(`) (`)
To Refinishing Process a/c 1,800 2,71,200 By Loss in weight 40 —
(Refinished oil) “ Finished stock a/c (Cost 1,760 2,85,200
“ Wages 10,000 per kg ` 162.67)
“ Power 3,000
“ Steam 500
“ Other expenses 500
1,800 2,85,200 1,800 2,85,200

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