Method:(i) Only Closing WIP and ii) No Process loss
|
Input |
5,000 units |
|
Output |
4,000 units |
|
Closing WIP |
1,000 units |
Degree of Completion:
|
Materials |
100% |
|
Labour |
80% |
|
Overhead |
50% |
Process Costs
|
Materials: |
Rs. 50,000 |
|
Labour: |
Rs. 30,000 |
|
Overhead: |
Rs. 20,000 |
Yor are required to ascertain (i) Equivalent Production, (ii) Cost per unit of Equivalent Production and prepare (iii) Process Account assuming that there is no opening WIP and no process loss.
STAGEI: Statement of Equivalent Production
STAGEII: Statement of Cost
STAGEIII:Statement of Evaluation
- Finished Goods:
|
(i) Materials: 4,000 units @ Rs. 10 |
= |
40,000 |
|
(ii) Labour: 4,000 units @ 6.25 |
= |
25,000 |
|
(iii) Overhead: 4,000 units @ 4.44 |
= |
17,780 |
|
82,780 |
- WIP:
|
(i) Materials (Ref: Stage I): 1,000 units @ Rs. 10 |
= |
10,000 |
|
(ii) Labour (Ref: Stage I): 800 units @ Rs. 6.25 |
= |
5,000 |
|
(iii) Overhead (Ref: Stage I): 500 units @ Rs. 4.44 |
= |
2,220 |
|
17,220 |
STAGEIV:Preparation of Process Account
Process Account