TO JOIN PRO BATCH
[Type here] 6291137153
. SUBSCRIBE OUR YT CHANNEL
///SEM 3 CCF///
CHAPTER 3 Process Costing
Q.1
Normal loss and abnormal loss.
In the Process Q, 300 units of a product were transferred from Process Pat a cost of ₹ 5,240. The additional expenses
incurred for the Process Q were ₹ 760 and overhead was charged @ 10% of expenses incurred. 20% of the inputs are
normally lost and sold at ₹ 8 per unit. 220 units were produced in the Process Q.
Prepare Process Q Account and Abnormal loss or Abnormal gain Account.
[C.U. B.Com. (Hons.) 2003]
Q.2
Abnormal gain and normal loss.
In a process 200 units of materials have been introduced at a cost of ₹ 9,600 and other expenditure incurred in the
process are: Wages ₹ 3,000 and overhead ₹ 1,300. Estimated Normal Loss is 15% and scrap value is ₹ 10 per unit.
The actual output is 180 units.
Show the Process Account and Abnormal gain Account.
[C.U. B.Com. (Hons.) 2006]
Q.3
Normal loss, abnormal loss & abnormal gain accounts.
Y Ltd. produces a single product which undergoes two processes. From the following information prepare Process
Accounts, Normal Loss Account, Abnormal Loss Account and Abnormal Gain Account.
Process A Process B
Raw Materials issued (3,000 units). ₹ 15,000 -
Additional Materials ₹ 1,000 ₹ 780
Direct Wages ₹ 14,000 ₹ 20,000
Production Overhead ₹ 3,000 ₹ 7,500
Normal Loss as % of input 10% 5%
Scrap Value per unit 2 5
Output in units 2,800 2,600
[C.U. B.Com. (Hons.) 2005]
COST ACCOUNTING 2
TO JOIN PRO BATCH
[Type here] 6291137153
. SUBSCRIBE OUR YT CHANNEL
///SEM 3 CCF///
Q.4
Finding out percentage of normal loss.
In Process D, 9,000 units of a product was transferred from additional expenses incurred for Process D were Sundry
materials Process Cat a cost of ₹54,000. The 2,500, Labour 6,000, Direct expenses 13,350 and overhead charged @
200% of labour. Wastage of Process D was sold at 2/unit. The final product from Process D was sold at 10 fetching a
profit of 10% on sale.
Calculate the rate of normal loss of Process D on the basis of input.
[C.U. B.Com. (Hons.) 2007]
Q.5
Normal and abnormal loss.
In a factory, a product is produced through two distinct processes Process-I and Process-II. On completion, it is
transferred to Finished Stock. From the following particulars during the month of December, 1994, prepare Process
Accounts and Finished Stock Account:
Process-I Process-II
Units Introduced 10,000 9,000
Transfer to Next Process/Finished Goods 9,000 8,250
Normal Loss (on inputs) 10% 5%
Realisable Value of Loss (per unit) ₹2 ₹4
Costs Incurred: ₹ ₹
Direct Materials 40,000 -
Direct Labour 20,000 20,000
Direct Expenses 12,000 10,050
Production Overhead (100% of direct labour)
Assume that there was no opening or closing stock of raw materials and work-in-progress.
[C.U. B.Com. (Hons.) 1995]
Q.6
A product is produced through two distinet processes particulars - Process A and Process B. From following
Particulars prepare Process A Account.
Process A
Materials introduced 1,000 units
Normal loss 5%
Transfer to next process 940 units Realisable value of Normal loss ₹ 2/unit
Cost incurred:
Direct Materials ₹ 10,000
Wages ₹ 2,000
Overheads ₹ 1,200
[C.U. B.Com. (General.) 2013]
2
COST ACCOUNTING 2
TO JOIN PRO BATCH
[Type here] 6291137153
. SUBSCRIBE OUR YT CHANNEL
///SEM 3 CCF///
Q.7
A factory has two processing departments Process A and Process B. The following details are available in respect of
Process A:
Process A
1,000 units introduced @ ₹ 6 per unit
Other materials added ₹ 4,000
Direct Wages ₹ 5,000
Chargeable Expenses ₹ 2,000
Factory Overhead Allowed ₹ 2,000
Normal Loss 5% of the input
Realisable Value of Scrap NIL
Actual Output of Process A 960 units
Prepare Process A Account.
[C.U. B.Com. (Gen.) 2014]
Q.8
Normal loss, abnormal loss, abnormal gain and finished stock account.
In a factory, a product is produced through two distinct processes-Process A and Process B. On completion, the
product is transferred to Finished Stock. During the month of December, 1996, the following information was
obtained:
Process A Process B
₹ ₹
Units Introduced 2,000 -
Units Transferred to Next Process 1,800 -
Units Transferred to Finished Stock - 1,750
Value of Units Introduced 11,000 -
Materials Cost - 1,000
Labour Cost 7,300 4,500
Overhead 2,800 2,240
The Normal loss in each process is 5% and it was sold at ₹ 2 per unit. There was no stock of raw materials or
Work-in-Progress at the beginning or at the end of the month.
Prepare Process Accounts and Finished Stock Account.
[C.U. B.Com. (Hons.) 1997]
COST ACCOUNTING 2
Q.9
A product is produced through two distinet processes particulars - Process A and Process B. From following
TO JOIN PRO BATCH
[Type here] 6291137153
. SUBSCRIBE OUR YT CHANNEL
///SEM 3 CCF///
Q.9
Normal loss, abnormal loss, abnormal gain and partial sale of finished goods.
X Lad. processes 'Z' through two distinct processes, Process A and Process B. On completion, it is transferred to
finished stock.
From the following information relating to the year 1997-98, prepare Process Accounts and Finished Stock
Account.
Particulars Process A Process B
Raw Materials used 1,000 units
Cost per unit ₹ 200
Transfer to next process or Finished Stock 940 units 870 units
Normal Loss (on inputs) 5% 10%
Direct Wages ₹ 15,600 ₹ 13,200
Direct Expenses 75% of direct wages 75% of direct wages
Sundry Expenses - ₹ 2,954
Realisable Value of Scrap per unit ₹ 4.50 ₹ 5.75
800 units of finished goods were sold at a profit of 20% on Cost. Assume that there was no opening or
closing stock of Work-in-Progress.
[C.U.B.Com. (Hons.) 1999]
Q.10
Preparation of abnormal gain account.
M/s Mou Ltd. produces a product which passes through three Processes A, B and C. From the following Particulars,
prepare Process B Account for the year 2023:
Output of Process A Transferred 3,000 units @ ₹ 5 each
Process Materials added ₹ 1,000
Direct Wages ₹ 10,000
Direct Expenses ₹ 4,000
Production Overhead. 20% of Direct Wages
Output of Process B 2,750 units
Normal Loss 10%
Scrap value of lost units. ₹ 2 per unit
Also show the Abnormal gain Account.
[C.U. B.Com. (Hons.) 2002 - Adapted]
[and C.U. B.Com. (General) 2017 – Adapted]
COST ACCOUNTING 2
Q.11
TO JOIN PRO BATCH
[Type here] 6291137153
. SUBSCRIBE OUR YT CHANNEL
///SEM 3 CCF///
Q.11
Input is missing
At the end of Process A carried on in a factory during the month ending 31st December, 2023, the number of units
produced was 1,900 excluding 110 units abnormally damaged during the process. The damaged units realised ₹ 4.00
per unit of Scrap. A normal wastage of 8% occurs during the process, the wastage realised was ₹ 3.00 per unit.
A unit of raw material cost was ₹ 5.00. The other expenses for the month were:
Wages ₹ 900
Power ₹ 300
General Expenses ₹ 800
2
45% of the output is sold so as to show a profit of 16 on Selling Price. The rest of the output of Process A
3
transferred to Process B Account.
Prepare Process A Account and Abnormal Loss Account.
[C.U. B.Com. (Hons.) 2015 - Dates changed]
Q.12
Normal loss quantity is unknown.
XYZ Ltd. manufactures a product which passes through two processes, Process A and Process B and then it is
transferred to Finished Stock Account. From the following particulars, prepare the Process Accounts:
Particulars Process A Process B
Input (units) 30,000 26,000
Materials Cost (₹) 60,000 8,000
Labour Cost (₹) 36,000 30,550
Overheads (₹) 18,000 21,900
Normal Loss 10% ?
Scrap Value per unit (₹) 2 3
There was no opening or closing work-in-progress. The final output from Process B transferred to Finished Stock
was 25,000 units. These finished goods were sold at ₹ 7.50 per unit with a profit of ₹ 1 per unit. What was the
normal loss rate in Process B?
[C.U. B.Com. (Hons.) 2004]
Q.13
COST ACCOUNTING 2
TO JOIN PRO BATCH
[Type here] 6291137153
. SUBSCRIBE OUR YT CHANNEL
///SEM 3 CCF///
Q.13
Almost similar to the previous problem.
A product passes through three Processes A, B and C. 1,000 units @ ₹ 4 per unit were introduced in process A.
Production Overheads are absorbed as a percentage of Direct Wages. The following information is available from
the cost records.
Items Process A Process B Process C Total
₹ ₹ ₹ ₹
Other Materials 5,200 4,000 2,050 11,250
Direct Wages 800 7,360 2,800 14,660
Production Overhead - - - 14,660
The actual output and information relating to normal loss of the different processes are given below:
Items Normal Loss as Output Units Value of Scrap
a % of input per unit
₹
Process A 10% 900 2
Process B 20% 680 4
Process C 25% 540 5
Prepare Process Accounts, Abnormal Loss Account and Abnormal gain Account.
[C.U. B.Com. (Hons.) 2010]
Q.14
XYZ Ltd. produces a standard product through Process A and Process B. Finished product of Product A is used as
raw materials of Process B.
From the following details prepare Process A Account, Process B Account, Abnormal Loss Account, Abnormal
Gain Account and Normal Loss Account.
Particulars Process A Process B
Input (units) 15,000 13,000
Labour Cost (₹) 18,000 15,275
Material Cost (₹) 30,000 4,000
Factory Overheads (₹) 9,000 10,950
Normal Loss 10% 5%
Scrap Value per unit (₹) 2 3
There was no opening or closing work-in-progress. The final output from Process B was 12,500 units.
[C.U. B.Com. (Hons.) 2012]
6
Q.15
COST ACCOUNTING 2
TO JOIN PRO BATCH
[Type here] 6291137153
. SUBSCRIBE OUR YT CHANNEL
///SEM 3 CCF///
Q.15
Normal Weight Loss - Wastage
The product of a manufacturing concern passes through two processes, viz, A and B, and then to finished goods.
From the following information prepare Process A Account, Process B Account, Normal Loss Account, Abnormal
Loss/Gain Accounts:
Items Process A Process B
Materials introduced (in tons) 2,000 140
Cost of materials per ton (₹) 250 400
Output (tons) 1,660 1,560
Normal Weight Loss (%) 5 5
Scrap (% of total input) 10 10
Scrap value per ton (₹) 160 400
Direct wages (₹) 1,12,000 40,000
Manufacturing expenses (₹) 32,000 21,000
[2nd Semester Cost and Management Accounting - I-H-C.U. 2018]
Q.16
Percentage of Normal Loss Missing
X Ltd produced a product through two distinct processes A and B and then to finished stock. From the following
information.
prepare Process A A/c, Process B A/c, Normal Loss A/c, Abnormal Loss A/c and Abnormal Gain Account.
Particulars Process A Process B
Input (units) 15,000 13,000
Labour Cost (₹) 18,000 15,275
Material Cost (₹) 30,000 4,000
Overheads (₹) 9,000 10,950
Normal Loss 10% ?
Scrap Value per unit (₹) 2 3
There is no opening and closing work-in-progress. The final output from Process B transferred to Finished Stock
was 12,500 units. The finished goods are sold at ₹ 7.50 per unit with a profit of ₹ 1 per unit.
[C.U. B.Com. (Hons.) 2014]
7
Q.17
COST ACCOUNTING 2
TO JOIN PRO BATCH
[Type here] 6291137153
. SUBSCRIBE OUR YT CHANNEL
///SEM 3 CCF///
Q.17
Statement of Equivalent Units of Production.
Following details are given in respect of manufacturing units for the month of April, 2012:
(i) Opening Work-in-Progress 5,000 units
Materials (100% complete) ₹ 18,750
Labour (60% complete) ₹ 7,500
Overhead (60% complete) ₹ 3,750
(ii) Units introduced in the process 17,500 units
(iii) 17,500 units are transferred to the next process.
(iv) Process costs for the period are:
Materials ₹ 2,50,000
Labour ₹ 1,95,000
Overheads ₹ 97,500
(v) The stage of competition of units in Closing W-I-P are estimated to be:
Materials 100%
Labour 50%
Overheads 50%
You are required to prepare a Statement of Equivalent Units of Production and Statement of Cost. Also find out
the value of (i) Output Transferred and (ii) Costing W-I-P using Average Cost Method.
[C.U. B.Com. (Hons.) Part-11, 2013]
Q.18
Inter Process Profits included in stocks
The following are the details in respect of Process A and Process B of a processing factory.
Particulars Process A Process B Process C
₹ ₹ ₹
Opening Stock 7,500 9,000 22,500
Material Cost 15,000 15,750 -
Labour 11,200 11,250 -
Overheads 10,500 4,500 -
Closing Stock 3,700 4,500 11,250
Inter Process Profit Included -
In Opening Stock - 1,500 8,250
Sales - - 1,40,000
Profit on Transfer Price 25% 20% -
Prepare Process A Account, Process B and Finished Stock Account.
[C.U. B.Com. (Hons.) II - 2016]
8
COST ACCOUNTING 2
