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Maf201 Tutorial c2 Process Costing Fe
Maf201 Tutorial c2 Process Costing Fe
MAF201 TUTORIAL
CHAPTER 2:
PROCESS COSTING
Production OH 396,180*
Production OH 3,096*
NL = 7% x 17,000 = 1,190***
PROD = OWIP + TRANS + ADD MATERIAL - CWIP
AG = Actual Loss – NL
= 600 + 18,100 + 1,000 -2,700
= 1,090 – 1,190
= 17,000 [FG+NL-AL]
= 100****
FE FEB 2023 Q2
12
Statement of Equivalent Unit [WAM]
TF P1 19,700 CP 15,910 100 15,910 100 15,910 100 15,910 100 15,910
CWIP 2,700 100 2,700 80% 2,160 60% 1,620 40% 1,080
Examples
Job Costing It is used for unique products A custom home builder
Is used for very small production A residential plumbing
runs
Process It is used for standardized products A cell phone manufacturer
Costing It is used for large production runs A manufacturer of
multivitamins
15 FA JULY 2022 Q2
FA JULY 2022 Q2
Assembly Process account
16
Units CPU Total Units CPU Total
RM RM RM RM
Direct Materials 20,000 99,150 Trans to 19,300 13.80 266,340
Finishing
Add Materials 40,050 Normal Loss 600 3.00 1,800
Prod OH 59,570
Production OH 75,920
NL = 4% x 19,000 = 760
PROD = OWIP + TRANS - CWIP
AG = Actual Loss – NL
= 1,400 + 19,300 – 1,700
= 600 – 760
= 19,000 [FG+NL+AL]
= 160
FA JULY 2022 Q2
18
Statement of Equivalent Unit [FIFO]
% left to be process
OWIP 1,400 OWIP 1,400 0 20% 280 40% 560 50% 700
TF P1 19,300 CP 17,000 100 17,000 100 17,000 100 17,000 100 17,000
CWIP 1,700 100 1,700 80% 1,360 60% 1,020 40% 680
AG 160 x RM25.00 ?
Production OH 60,700
NL = 5% x 19,600 = 980
PROD = OWIP + TRANS - CWIP AL = INPUT – FG –NL –CWIP FG = 18,500
= 1,000 + 19,100 – 500 = 20,100 – 18,500 – 980 – [given]
= 19,500 [FG+NL+AL] 500
= 120
FA FEB 2022 Q2
24
Statement of Equivalent Unit [FIFO]
% left to be process
Treatment in Cost of normal loss is borne by Cost of abnormal losses is not borne by
accounts the remaining good units. the remaining good units.
the cost of normal losses is included the cost of abnormal losses is treated as
as part of the cost of good period cost and is valued on the same basis
production, and therefore, the cost of as good production. The cost is written off
normal loss is absorbed into the cost in the statement of profit or loss at the end
of completed production. of the accounting period.
Part of cost It is treated as a part of cost. It is charged to profit and loss account
(SOPL) and not being treated as a part
of cost.
Explain TWO (2) reasons why joint costs need to be apportioned to each joint product
produced by the company.
- To value the closing inventories of each joint product
- To compute the costs of each joint product
- To compute the profitability of each joint product
- To calculate the Selling Price
(or any other relevant answers
27 FA JULY 2021Q2
FA JULY 2021
Cutting Process account
28
= RM8,740 – RM190
1,000 - 100
= RM9.50
FA JULY 2021
Sewing Process account
29
Overhead 3,780
= RM75,000 – RM0
15,000 - 0 AL = INPUT – OUTPUT
= RM5.00 = 15,000 – 12,000
= 3,000
FA FEB 2021 Q2
Packaging Process account
35
Units CPU Total Units CPU Total
RM RM RM RM
OWIP 1,400 17,000 FG 17,000 126,224
FG = 17,000
FA FEB 2021 Q2
36
Statement of Equivalent Unit [WAM]
Input Output From P1 Add Material Conversion
costs
% Units % Units % Units
OWIP 1,400 FG 17,000 100 17,000 100 17,000 100 17,000
Trans in 12,000 CWIP 1,000 100 1,000 60 600 40 400
FA FEB 2021 Q2
Statement of Cost and Evaluation [WAM]
37
= RM32,500 - RM2,000
2,000 - 100 AG = ACTUAL OUTPUT – EXPECTED OUTPUT
= 2,120 – 1,900
= RM17 = 220
FA JULY 2020
41
Mixing Process account
Units CPU Total Units CPU Total
RM RM RM RM
OWIP 650 9,750 FG 3,680 106,047
Prod OH 10,000
TF P1 2,120 CP 3,030 100 3,030 100 3,030 100 3,030 100 3,030
Material 1,600 NL 437 100 437 100 437 100 437 100 437
Cost per Unit = Total Input Cost – NL Scrap Value AG = INPUT – TRANS - NL
Expected Output Units = 30,000 – 25,800 -4,500
= 300
= RM240,000 - RM5,400
30,000 – 4,500 @
AG = ACTUAL OUTPUT - EXPECTED OUTPUT
= 25,800 - 25,500
= RM9.20 = 300
FE DEC 2019
Drying Process account
46
Units CPU Total Units CPU Total
RM RM RM RM
OWIP 1,500 17,350 FG 22,500 382,606
FE DEC 2019
Statement of Cost and Evaluation [FIFO]
48 Cost Trans- in Material Conversion Cost Total
RM RM RM RM
Current Cost RM237,360 RM81,120 RM100,800
Total EQ units 25,800 25,350 25,200
= Cost per EQ unit = RM9.20 = RM3.20 = RM4.00 RM16.40
Evaluation of:
Finished Goods
a. OWIP b/d 17,350
b. OWIP - 300 x RM3.20 600 x RM4.00 3,360
= RM960 = RM2,400
c. CP 21,000 x RM16.40 344,400
d. Net NL 1,215 x RM16.40 17,496
= NL Value – NL SV =RM19,926
= RM19,926 – RM2,430
Total ?
AL 585 x RM16.40 9,594
CWIP 3,000 x RM9.20 2,250 x RM3.20 1,800 x RM4.00 42,000
FE DEC 2019
49
Overhead 4,590
AG 10 100
Cost per Unit = Total Input Cost – NL Scrap Value Normal Loss
Expected Output Units = 6% x 6,500
= 390 units
= RM61,490 - RM390
6,500 – 390 AG = INPUT – TRANS - NL
= 6,500 – 6,120 - 390
= RM10.00 = 10
FE JUNE 2019
53
Finishing Process account
Units CPU Total Units CPU Total
RM RM RM RM
OWIP 200 2,800 FG 5,700 92,140
Overhead 6,260
7,000 106,310 7,000 106,310
Normal Loss AL =ACTUAL LOSS - NL
= 4% X [200 + 6,120 + 680] = 300 - 280
= 280 units = 20
FG = INPUT – NL – CWIP - AL
= 7,000 - 280 – 1,000 - 20
= 5,500
FE JUNE 2019
54
Statement of Equivalent Unit [FIFO]
Input Output Trans-in Material Labour OH
From P1
% Units % Units % Units % Units
OWIP 200 OWIP 200 0 0 0 0 50 100 30 60
TF P1 6,120 CP 5,500 100 5,500 100 5,500 100 5,500 100 5,500
Material 680 NL 280 100 280 100 280 100 280 100 280
AL 20 100 20 100 20 100 20 100 20
CWIP 1,000 100 1,000 80 800 60 600 40 400
7,000 7,000 6,800 6,600 6,500 6,260
Overhead 9,000
AG 350 4,550
= RM123,500 AG = INPUT – FG - NL
10,000 – 500 = 10,000 – 9,850 - 500
= 350
= RM13.00
FE DEC 2018
59
Process B account
Units CPU Total Units CP Total
RM RM U RM
RM
OWIP 2,500 30,000 FG 24,460 375,333
From Process 9,850 13.00 128,050 Normal Loss 1,370 0.50 685
A
Material 15,760 151,500 CWIP 1,800 20,880
Overhead 15,726
28,110 403,906 28,110 403,906
AL = INPUT – FG – NL - CWIP
= 28,110 – 24,460 – 1,370 – 1,800
= 480
FE DEC 2018
60
Statement of Equivalent Unit [FIFO]
Input Output Input Add Labour OH
Material Material
% Units % Units % Units % Units
= RM84,900 – RM1,200
AL = INPUT – TRANS - NL
10,000 – 1,000 = 10,000 – 8,500 – 1,000
= 500
= RM9.30
FE JAN 2018
71
Packaging Process account
Units CPU Total Units CPU Total
RM RM RM RM
From Cooking 8,500 9.30 79,050 FG 7,100 77,872
Expected Loss/NL =
AG = FG + NL + CWIP – TRANS - OWIP
Actual Loss/Scrap = 700
= 7,100 + 780 + 1,200 – 8,500 – 500
EL > AL = Abnormal Gain
= 80
FE JAN 2018
72
Statement of Equivalent Unit [FIFO]
Input Output TFPA Material Conversion
Cost
% Units % Units % Units
OWIP 500 OWIP 500 0 - 40 200 60 300
TF C 8,500 CP 6,600 100 6,600 100 6,600 100 6,600
Material NL 780 100 780 100 780 100 780
CWIP 1,200 100 1,200 75 900 70 840
Overhead 105,000
= RM976,000 – RM0
70,000 – 7,000
AL = INPUT – TRANS - NL
= RM15.50
= 70,000 – 60,000 – 7,000
= 3,000
FE MARCH 2017
77
Process 2 account
Units CPU Total Units CPU Total
RM RM RM RM
OWIP 7,000 76,000 FG 60,000 1,206,990
Overhead 103,230
Overhead 42,280
Trans in 4,200 CWIP 540 100 540 100 540 70 378 70 378
CWIP 540 x RM80.00 540 x RM26.00 378 x RM17.00 378 x RM10.00 67,446
=RM =RM =RM = RM
FE OCT 2016
86
Overhead 3,120
Trans from 15,500 7.40 114,700 Normal Loss 632 1.00 632
Process 1
Direct Labour 20,800 CWIP 500 5,295
2. Many different jobs are worked on during Products are produced in a continuous
each period. Product is recognized by basis. Flow of units is more or less
job or batch. continuous.
Abnormal loss
Abnormal losses are losses that are not inherent in the production. It
can be avoided and eliminated. These losses are not expected and
would not occur under efficient operating conditions.
93 FE SEPT 2015
FE SEPT 2015
94
Mixing Process account
Units CPU Total Units CPU Total
RM RM RM RM
= RM567,000 – RM0
AL = INPUT – TRANS – NL
200,000 – 20,000 = 200,000 – 160,000 – 20,000
= RM3.15 = 20,000
FE SEPT 2015
95
Colouring Process account
Units CPU Total Units CPU Total
RM RM RM RM