KARIMGANJ COLLEGE
ONLINE ASSIGNMENT
(COMMERCE DEPARTMENT)
DETAILS
➢ NAME :- BISHAL DHAR
➢ SESSION :- 2019-2020
➢ REGISTRATION NO. :- 20180005267
➢ LAST UNIVERSITY ROLL :- 031918
➢ LAST UNIVERSITY NO. :- 300200065
➢ COLLEGE ROLL NO. (OLD) :- 1642
➢ COLLEGE ROLL NO. (NEW) :- 1668
➢ SUBJECT :- COMMERCE
➢ CLASS :- B.COM
➢ SEMESTER :- 4TH SEMESTER
➢ NAME OF THE PAPER :- COST ACCOUNTING
➢ HONOURS/PASS :- HONOURS
➢ DEPARTMENT :- COMMERCE
➢ MOBILE NO. :- 7002139650
➢ EMAIL ID :- [email protected]
1. (i) Bengal Chemical Co. Ltd. produced three chemicals during the month
of July, 2019 by three consecutive processes. In each process 2% of the
total weight put in is lost and 10% is scrap which from processes (1) and (2)
realizes Rs/- 100 a ton and from process (3) Rs/- 20 a ton.
The products of three processes are dealt with as follows:
Process 1 Process 2 Process 3
Passed on to the next process 75% 50% --
Sent to warehouse for sale 25% 50% 100%
Expenses Incurred:
Process 1 Process 2 Process 3
Rs/- Tons Rs/- Tons Rs/- Tons
Raw Materials 1,20,000 1,000 28,000 140 1,07,480 1,348
Manufacturing Wages 20,500 - 18,520 - 15,000 -
General Expenses 10,300 - 7,240 - 3,100 -
Prepare Process Cost Accounts showing the cost per ton each product.
Solution :-
In the books of Bengal Chemical Co. Ltd.
Dr. Process 1 A/c
Cr.
Particulars Quantity Amount Particulars Quantity Amount
(Tons) (₹) (Tons) (₹)
To Raw Material 1000 120000 By Loss of Weight 20 −¿
(2% of 1000)
To Manufacturing Wages 20500
By Sale of Scrap 100 10000
To General Expenses 10300 (10% of 1000)
(Realised @100/ton)
By Process 2 A/c 660 105600
(Transferred @160/ton)
By Warehouse A/c 220 35200
(Transferred @160/ton)
1000 150800 1000 150800
Dr. Process 2 A/c
Cr.
Particulars Quantity Amount Particulars Quantity Amount
(Tons) (₹) (Tons) (₹)
To Process 1 A/c 660 105600 By Loss of Weight 16 −¿
(2% of 800)
To Raw Materials 140 28000
By Sale of Scrap 80 8000
To Manufacturing Wages 18520 (10% of 800)
(Realised @100/ton)
To General Expenses 7240
By Process 3 A/c 352 75680
(Transferred @215/ton)
By Warehouse A/c 352 75680
(Transferred @215/ton)
800 159360 800 159360
Dr. Process 3 A/c
Cr.
Particulars Quantity Amount Particulars Quantity Amount
(Tons) (₹) (Tons) (₹)
To Process 2 A/c 352 75680 By Loss of Weight 34 −¿
(2% of 1700)
To Raw Materials 1348 107840
By Sale of Scrap 170 3400
To Manufacturing Wages 15000 (10% of 1700)
(Realised @20/ton)
To General Expenses 3100
By Warehouse A/c 1496 198220
(Transferred
@132.50/ton)
1700 201620 1700 201620
1. (ii) M/s Indi Industries Ltd. is the manufacturer of moon-light torches. The
following data relate to manufacture of torches during the month of March
2019:
Raw Materials Consumed Rs/- 20,000
Direct Wages Rs/- 12,000
Machine hour worked 9500 hours
Machine hour rate Rs/- 2
Office Overheads 20% of works cost
Selling Overheads Rs/- 0.50 per unit
Units Produced 20,000 units
Units Sold 18,000 @ Rs/- 5 per unit
Prepare cost sheet showing the cost and the profit per unit and the total
profit earned.
Solution :-
Output – 20,000 units Cost Sheet Period – March 2019
Particulars Amount (₹) Per Unit (₹)
Raw Materials Consumed 20,000 1.00
Direct Wages 12,000 0.60
Prime Cost → 32,000 1.60
Factory Overhead
Machine Expenses (9500 hours @₹2 per hour) 19,000 0.95
Works Cost → 51,000 2.55
Office and Administrative Overhead
Office Overheads (20% of 51,000) 10,200 0.51
Cost of Production → 61,200 3.06
6120 −¿
(−¿) Value of closing stock
(2000 units @ ₹ 3.06 per unit)
55,080 3.06
Cost of Goods Sold →
Selling and Distribution Overhead 9,000 0.50
Selling Overheads
(18000 units @0.50 per unit) 64,080 3.56
Cost of Sale →
Particulars Amount (₹) Per Unit (₹)
Profit (Balancing Figure) 25,920 1.44
Sales 90,000 5.00
