Question

4.
A product passes through two different processes, before it is transferred to finished
stock. The following information is obtained.
20
Particulars
Process - 1 Process - 2
Opening Stock
32.000 40,000
Direct Materials
64,000 1,78,000
Direct Wages
40,000 60,400
Factory Overheads
20%
10%
(percentage of prime cost of the process)
Inter process profit in opening stock 3
8.000
Closing Stock
₹ .
16.000
48,000
The output of Process - 1 is transferred to Process - 2 at 15% profit on the cost price.
Output of Process - 2 is transferred to finished goods stock at 10% profit on transfer
price.
Stock in the process are valued at prime cost.
The opening stock of finished goods was * 1,25,200 and closing stock of finished
goods was 60,920. Profit in Opening stock of finished goods was 25,200. Sales
during the period were 6,50,000.​

Answer 1

Answer:

In this article we will discuss about the top five problems on process costing with their relevant solutions.

Contents:

Process Costing Problem 1 with Solution

Process Costing Problem 2 with Solution

Process Costing Problem 3 with Solution

Process Costing Problem 4 with Solution

Process Costing Problem 5 with Solution

Process Costing Problem 1:

The Bharat Manufacturing Company’s product passes through two distinct processes, X and Y, and then to the finished stock. It is known from the past experience that wastage occurs in the process as under:

Explanation:

In Process X, 5% of the units entering the process.

In Process Y, 10% of the units entering the process.

The scrap value of the wastages in process X is Rs.8 per 100 units and in process Y is Rs.10 per 100 units.