can someone solve this for me!

[xaara~hussain]

2. A product passes through two processes. The output of each process is treated as raw material for the next process. The expenditures incurred during a period were as under

PARTICULARS…………..…… PROCESS: A (Rs.) …………PROCESS: B (Rs.)
Raw materials………………………..….. 400,000 …………………….....200,000
Direct labour………………………………...60,000……………………...……40,000
Factory overhead…………………..…..100,000……………………...….100,000
Total management cost……....560,000……………...…. 340,000

10,000 units were issued to the process – A and after processing, the output of each process is as under:

PARTICULARS………OUTPUT/(UNITS) ……NORMAL LOSS/%
Process A ………………..…...… 9,750………………....………2
Process B…………………...…... 9,400……………………....…5
No stock of material or work in process was left at the end

Required: Prepare Process Accounts to show the cost of the finished articles.

[Pakistan Zindabaad]

Process-A Account

Particulars----------Units----Rs-----------Particulars---------Units----Rs
Raw Material............10,000...400,000----Process-B Account...9,750.....557,143.
Direct Labour.........................60,000-----Normal Loss.........200units........
Factory Overhead.................100,000-----Abnormal loss.........50......2857..

Total......................10,000....560,000...... ..........................10,000...560,000.


WORKINGS

Per Unit Cost = Total Cost/ Expected Production.
= 560,000/10,000-200
=Rs. 57.1429
Expected Production or Normal output = Input units - normal loss
= 10,000-200= 9,800 Units

Process-B Account

Particulars----------Units----Rs-----------Particulars---------Units----Rs

Raw Material............9,750...200,000-----Finished goods........9,400.......345,066.
Direct Labour........................40,000-----Normal Loss..........488 units........
Factory Overhead.................100,000.
Abnormal gain...........138..........5,066.

Total......................9,888....345,066....... ......................9,888.......345,066.


Per Unit Cost = Total Cost/Expected production.
= 340,000/9,750-488
= Rs. 36.7091

Important Notes:

1- Abnormal Loss units should not be excluded from Expected Production.
2- Abnormal gain units come from balancing the units side.




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