Scribd
Upload
56 views

Process Costing Part C Questions

This document contains 4 questions regarding process costing. Each question provides information about processes and stocks for a product over a period of time. Readers are asked to: 1) Prepare necessary accounts in columnar form showing profit at each stage of production. 2) Calculate the actual realized profit. 3) Calculate the value of closing stock to be shown in the balance sheet.

Uploaded by

harshnagar147
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
56 views

Process Costing Part C Questions

This document contains 4 questions regarding process costing. Each question provides information about processes and stocks for a product over a period of time. Readers are asked to: 1) Prepare necessary accounts in columnar form showing profit at each stage of production. 2) Calculate the actual realized profit. 3) Calculate the value of closing stock to be shown in the balance sheet.

Uploaded by

harshnagar147
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 5

PROCESS COSTING: PART C

QUESTIONS

Dr Manisha Bhavsar
Associate Professor in Accountancy
H L College of Commerce
Question 1
A product passes through two different processes A and B before it is transferred to finished
stock. The output of Process A is transferred to Process B at 25% profit on cost, while the output
of Process B is transferred to Finished Stock at 25% profit on transfer price.
The following information is available for the month of December.

Particulars Process A (₹) Process B (₹) Finished Stock (₹)


Opening Stock 8,000 12,000 20,000
Direct material 52,000 30,000 -
Direct wages 40,000 60,000 -
Overheads 24,000 43,200 -
Closing Stock 4,000 25,200 38,000
Inter-process profit in opening stock - 2,000 8,000
Stocks in process are valued at prime cost, and finished stock is valued at the price at which it is
received from Process B. Sales during the month amounted to ₹ 4,00,000.
(1) Prepare necessary accounts in columnar form considering the profit at each stage.
(2) Calculate the actual realized profit.
(3) Calculate the value of closing stock to be shown in the Balance Sheet.
Dr Manisha Bhavsar, HLCC 2
Question 2
A product passes through three different processes before it is transferred to finished stock.
The following information is available for the month of January.
Particulars Process X (₹) Process Y (₹) Process Z (₹) Finished Stock (₹)
Opening Stock 40,000 50,000 1,00,000 2,00,000
Direct material 80,000 1,60,000 3,00,000 -
Direct wages 50,000 70,000 2,00,000 -
Factory overheads
20% 25% 20% -
(% on Prime Cost)
Closing Stock 20,000 60,000 2,00,000 85,000
Inter-process profit
- 10,000 18,750 60,000
in opening stock
Sales 18,00,000
Inter-process profit
10% 12.5% 20%
(% on transfer price)
(1) Prepare necessary accounts in columnar form showing the profit at each stage.
(2) Calculate the actual realized profit.
(3) Calculate the value of closing stock to be shown in the Balance Sheet.
Dr Manisha Bhavsar, HLCC 3
Question 3 Eg 2 Pg 98
A product passes through two different processes I and II before it is transferred to finished stock.
The output of Process I is transferred to Process II at 25% profit on transfer price, while the
output of Process II is transferred to Finished Stock at 25% profit on cost.
The following information is available for the month of July.

Particulars Process I (₹) Process II (₹) Finished Stock (₹)


Opening Stock 5,000 8,000 10,000
Direct material 30,000 6,000 -
Direct wages 25,000 15,000 -
Factory overheads 7,000 5,500 -
Closing Stock 10,000 10,500 13,500
Inter-process profit in opening stock - 2,000 4,000
Sales 2,00,000

(1) Prepare necessary accounts in columnar form showing the profit at each stage.
(2) Calculate the actual realized profit.
(3) Calculate the value of closing stock to be shown in the Balance Sheet.
Dr Manisha Bhavsar, HLCC 4
Question 4 Eg 10 Pg 105
A product passes through three different processes before it is transferred to finished stock.
The following information is available for the month of March.
Particulars Process I (₹) Process II (₹) Process III (₹) Finished Stock (₹)
Opening Stock 2,000 12,000 10,000 25,000
Direct material 13,000 20,000 40,000 -
Direct wages 10,000 10,500 50,000 -
Factory overheads 10,000 30,000 57,600 -
Closing Stock 5,000 8,000 23,600 32,500
Inter-process profit
- 2,000 2,800 10,000
in opening stock
Sales 3,00,000
Inter-process profit 25% on cost 25% on 10% on
transfer price transfer price
(1) Prepare necessary accounts in columnar form showing the profit at each stage.
(2) Calculate the actual realized profit.
(3) Calculate the value of closing stock to be shown in the Balance Sheet.
Dr Manisha Bhavsar, HLCC 5

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy