Preparation of Process Accounts (With process losses and no WIP) Practice Problem 4 Product X in a manufacturing unit passes through three processes- Process A, Process B and Process C. The expenses incurred in the three processes during the year 2007 were as under. Particulars Process A Process B Process C Units of input issued 8500 Details RO RO RO Cost per unit Materials 150 28500 25000 18500 Direct Labor 12000 23000 23110 Direct Expenses 2250 17200 8100 The normal losses and scrap value are as under Particulars Actual Output Normal Process Scrap Value RO Loss Process : A 8075 5 % 2 per unit Process : B 7200 10% 1.5 per unit Process : C 7050 2.5% 1.2 per unit
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![Preparation of Process Accounts
(With process losses and no WIP)
Practice Problem 4
Product X in a manufacturing unit passes through three processes- Process A, Process B
and Process C. The expenses incurred in the three processes during the year 2007 were
as under.
Particulars
Process A
Process B
Process C
Units of input issued
8500
Details
RO
RO
RO
Cost per unit
150
Materials
28500
25000
18500
Direct Labor
12000
23000
23110
Direct Expenses
2250
17200
8100
The normal losses and scrap value are as under
Particulars
Actual Output
Normal Process
Scrap Value RO
Loss
Process : A
8075
5 %
2 per unit
Process : B
7200
10%
1.5 per unit
Process : C
7050
2.5%
1.2 per unit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb9701fc-d6bb-4c62-9287-62c1a90f80c5%2F0cf29b16-de45-4bb9-8d9f-5c46a0f367c3%2Fcvc5d6c_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)