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material losses in cost accounting ppt

13 Nov 20
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3. Cost Accounting Books. Report a Violation, Cost Accounting Problems on Economic Ordering Quantity, Cost Accounting Problems on Labour Hour Rate, Cost Accounting Problems on Secondary Distribution, Cost Accounting Problems on Incentive Schemes, Cost Accounting Problems on Idle Capacity Cost, Cost Accounting Problems on Batch Costing, Cost Accounting Problems on Contract Costing, Cost Accounting Problems on Process Costing, Cost Accounting Problems on Normal Loss, Abnormal Loss and Abnormal Gain, Cost Accounting Problems on Equivalent Production, Cost Accounting Problems on Apportioning Total Process Costs, Top 4 Problems on Labour Turnover with Solutions | Cost Accounting, Top 5 Problems on Overhead with Solutions | Cost Accounting. Assume there are 300 working days in a year. 5.00, (iii) Fixed expenses in 2007 = 75,000 + 25,000 = 1,00,000, (iv) Rate of profit on sales = 2/12 × 100 = 16⅔%. 11,000. 4 = 4.00 + 1.00 = Rs. Material Rs. • Materials are protected against loss by fire, theft, etc. 2,40,000. Content Guidelines 2. From the following data prepare the Process A/c’s: Mukherjee & Co. produces an article through two processes X and Y which is then sent to the finished stock. Disclaimer 9. 2. 20 per 100 units and the machine consumed 10 units per hour. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. . Labour Hour Rate 6. In the process line of XY Company three joint products are produced for the month of May 1990. Labour hours worked = No. Apportioning Total Process Costs. of workers, 2. Jobs carried forward from one week to another. 1. sets per annum. If you wish to opt out, please close your SlideShare account. Scribd will begin operating the SlideShare business on December 1, 2020 of working days × hours of daily work × No. The output is obtained along with wastage, scrap, spoilages and defectives. Cost Accounting – Theory and Problems, Maheshwari, S.N and Mittal, S. N. (2009) Cost Accounting, Rajasekaran, (2010), 1st ed, Pearson Education. Economic Ordering Quantity 3. (ii) FIFO; and (iii) Simple Average methods. Option # 2: A scrap account is opened with the full amount of the scrap of the You can change your ad preferences anytime. The cost of material of the product is Rs. Normal Loss, Abnormal Loss and Abnormal Gain 13. Normal loss, and . Equivalent Production 14. Cost Accounting Problem on Economic Ordering Quantity (2 Problems): 3. 10 and that the set-up cost per batch is Rs. Losses of material during handling, storage or manufacturing are called as material losses in cost accounting. These are to be charged to the two contracts in proportion to wages. 35,000, Overhead Rs. 6,000 + Rs. 19,662-50. Cost Accounting Problems on Batch Costing (2 Problems): 10. (c) Variable selling overhead and fixed expenses will rise by 25% and Rs. It was installed in a shop over ⅕th of its floor area at an additional cost of Rs. 5.00 + Rs. Incentive Schemes 8. 648. A manufacturer uses 75,000 units of a particualr material per year. on 16.12.06 and another shortage of 10 kg on 26.12.06. By: Cost Accounting Problems on Labour Hour Rate (3 Problems): 6. Prohibited Content 3. 2.00 per hour plus a bonus under the Rowan Premium Bonus Scheme and Dearness Allowance of Rs. As the wages and material cost increased by Rs. 1-50 per unit and the carrying cost is estimated to be 25% p.a. Process Costing 12. • Materials should be stored in such a way that they provide minimum of handling and cost… Cost Accounting Problems on Incentive Schemes (2 Problems): 8. The cost of placing an order is Rs. Profit 25% on cost. Statement showing the amount of provision to be made to offset the inter-process profits added: The following information is available regarding process X during the year ended 31.3.95. 1. 1. Cost Accounting Problem on Cost Sheet (4 Problems): 2. 18. 005 and Contract No. of workers: A machine was purchased for Rs. Losses in the form of waste, scraps, spoilage and defectives are inherent and inevitable with any […] 5,000 + Rs. You are required to prepare a statement showing the estimated profit or loss for each product and in total. (i) Variable overhead changed with production unit. (i) Calculation for the amount of Contract Price increased due to Escalation Clause. Idle Capacity Cost  9. Cost Accounting Problems on Idle Capacity Cost (1 Problem): 9. • Material to be purchased only when need exists and in economic quantities. If you continue browsing the site, you agree to the use of cookies on this website. If you wish to opt out, please close your SlideShare account. Cost Accounting Problems on Store Ledger (4 Problems): 4. (iii) Bonus = Rs. Looks like you’ve clipped this slide to already. 005 = 2/3 × 2,25,000/2,50,000 × 62,000 = 37,200, (b) Contract No. 1. Now customize the name of a clipboard to store your clips. Process Cost Accounting Job Order Cost System Process Cost Systems An accounting system used to apply costs: To similar products That are mass-produced In a continuous fashion Accumulating Manufacturing Costs- Same As In Job Order Assigning Material Costs Fewer requisition slips than in job order since materials are for a process rather than specific job. 25,000, respectively. 1. Prof.V. Cost Accounting Principles and Practice, Jain, I. We could classified material losses into two parts i.e. Content Filtrations 6. See our User Agreement and Privacy Policy. Find out the amount of provision to be made to offset the inter-process profits added. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. The cost of holding a doll is Rs. Other charges are charged as a proportion of direct wages. The pre-separation point costs are apportioned to joint products according to weight. A manufacturing company has two production departments X and Y and three service departments: Store, Maintenance and Time Keeping. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. From the following particulars determine the Economic Order Quantity: (i) Annual consumption of materials = 2,000 tonnes; The total cost of the inventory is minimum, when the ordering quantity is 500 units, i.e. The departmental distribution summary showed the following expenses for June 2007: Rina, a contractor got a contract to supply 100 wooden dolls per day to M/s R. K. Mitra & Co. Secondary Distribution 7. What would be the optimum run size for unit manufacture? Store Ledger 4. 25,000. As of this date, Scribd will manage your SlideShare account and any content you may have on SlideShare, and Scribd's General Terms of Use and Privacy Policy will apply. per annum will be Rs. The accounts of Basudev Manufactures Ltd. for the year ended 31st December 1988 show the following: Prepare a Cost Sheet for the year ended 31.3.86 from the following figures extracted from the books of Best Engineering Co. Materials purchased 2,50,000, Wages paid 2,00,000, Carriage inward 2,000, Consumable Stores 10,000, Wages of Storekeeper 7,000, Depreciation of Plant & Machinery 10,000, Materials destroyed by Fire 5,000, Repairs & Renewals 5,010, Office Manager’s Salary 10,000, Salary to Office Staff 20,500, Printing & Stationary 10,000, Power 10,500, Lighting for Office Building 2,000, Carriage outward 3,000, Freight 5,000, Entertainment 2,500, Warehousing charges 1,500, Legal charges 2,000, Expenses for participating in Industrial exhibition-6,000. From the following, you are required to calculate for each employee: (a) The bonus hours and amount of bonus earned; (c) The wage cost of each good unit produced. From the following information, find the profit made by each product apportioning joint cost on sales value basis: Product A = 1,32,000/2,20,000 × 1,67,600 = 1,00,560, Product B = 88,000/2,20,000 × 1,67,600 = 67,040. 34,800 = 8,700. Cost Accounting Problems on Inter-Process Profit (1 Problem): 13. 20,000. Calculate the labour hour rate for each of the production departments: Service rendered by the service department to production departments A, B and C is in the ratio of 2: 2: 1, respectively. RAMACHANDRAN Times Business School,Vashi, Navi Mumbai-400 703 (October,2011). Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The accurate cost of output can be computed after taking the losses into account. Cost Accounting Problem on Process Costing (3 Problems): 12. of working days × Hours of daily work × No. 20 and the overheads are recovered at 200% of the total wages. From the following details compute the Machine Hour Rate: It is estimated that the supervisor devotes one-fourth of his time for the machine, the cost of power is Rs. Saha & Bose Ltd. has made a contract with Mitra & Das Ltd. to supply 4,800 T.V. 55,000. Copyright 10. The following illustration will be helpful to understand how to calculate the inter-process profit. What would be the cost per unit and selling price in 2007, if it is desired to maintain the same rate of profit on sales as in 2006? 5 will not be considered as it has already been exhausted). 5.50. The following are the details of Process X, Process Y and Process Z: Stock in process is valued at Prime Cost and Finished stock at the price at which it is received from process III.

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