Page 294 - DCOM202_COST_ACCOUNTING_I

Cost Accounting – I

Notes Labour :

Opening Labour 17,500
In process II 60,000
77,500 18,600 4.1667
Overheads :
Opening Stocks 11,000
In process II 60,000
71,000 17,800 3.9888
Total cost per unit 16.5778
Valuation of Equivalent Unit
`
Finished goods (17000 units x ` 16.5778) 2,81,822
Abnormal Units (800 units x ` 16.5778) 13,262
Work in progress
Material I (4000 units x ` 6.1955) 24,782
Material II (3200 units x ` 2.2268) 7,126
Labour (2400 units x ` 4.1667) 10,000
Overheads (1600 units x ` 3.9888) 6,382 48,290

Dr. process III A/c Cr.
Particulars Units ` Particulars Units `
To Opening WIp 2,000 57,050 By Normal Loss 1,800 7,200
To process 2 20,000 1,20,000 By Finished Goods
To Direct Units 17,000 2,81,822
Material II 30,000 By Closing Balance 4,000 48,290
To Direct Labour 60,000
To Overheads 60,000
To Abnormal Gain 800 13,262
22,800 3,37,312 22,800 3,37,312

Example: From the following information’s find out (i) Equivalent Production, (ii) Cost
per unit of Equivalent production, and (iii) prepare process A Account. Assume there is no
opening work-in-progress and process loss.
Input 1,900 units

Output 1,500 units
Closing work-in-progress 400 units

degree of completion of closing Process costs of the current
Items
WIP in % period (`)
Materials 80 3,640
Direct labour 70 5,340
Overheads 70 3,560

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