Top 14 Cost Accounting Problems With Solutions

8/3/2017 Top 14 Cost Accounting Problems With SolutionsTop 14 Cost Accounting Problems With Solutions Article shared by In this article we have compiled various cost accounting problems along with its relevant Solutions. After reading this article you will learn about cost accounting problems on: 1. Cost Sheet 2. Economic Ordering Quantity 3. Store Ledger 4. Wage Payment  5. Labour Hour Rate 6. Secondary Distribution 7. Incentive Schemes 8. Idle Capacity Cost  9. Batch Costing 10. Contract Costing 11. Process Costing 12. Normal Loss, Abnormal Loss and Abnormal Gain 13. Equivalent Production 14. Apportioning Total Process Costs. Contents: 1. Cost Accounting Problems on Cost Sheet 2. Cost Accounting Problems on Economic Ordering Quantity 3. Cost Accounting Problems on Store Ledger 4. Cost Accounting Problems on Wage Payment  5. Cost Accounting Problems on Labour Hour Rate http://www.yourarticlelibrary.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 1/47 8/3/2017 Top 14 Cost Accounting Problems With Solutions 6. Cost Accounting Problems on Secondary Distribution 7. Cost Accounting Problems on Incentive Schemes 8. Cost Accounting Problems on Idle Capacity Cost  9. Cost Accounting Problems on Batch Costing 10. Cost Accounting Problems on Contract Costing 11. Cost Accounting Problems on Process Costing 12. Cost Accounting Problems on Normal Loss, Abnormal Loss and Abnormal Gain 13. Cost Accounting Problems on Equivalent Production 14. Cost Accounting Problems on Apportioning Total Process Costs Cost Accounting Problems 1. Cost Accounting Problem on Cost Sheet (4 Problems): Problem 1: ADVERTISEMENTS: http://www.yourarticlelibrary.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 2/47 8/3/2017 Top 14 Cost Accounting Problems With Solutions Sony ICD-UX533 4 GB … Zoom H6 6 Track Portable … Rs. 27,290.00 Rs. 8,500.00 (details + delivery) (details + delivery) The accounts of Basudev Manufactures Ltd. for the year ended 31st December 1988 show the following: Find out: (a) Material Consumed ADVERTISEMENTS: http://www.yourarticlelibrary.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 3/47 8/3/2017 Top 14 Cost Accounting Problems With Solutions (b) Prime Cost (c) Works Cost (d) Cost of Production (e) Total Cost and ADVERTISEMENTS: (f) Sales. Solution: http://www.yourarticlelibrary.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 4/47 com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 5/47 .yourarticlelibrary. http://www.86 from the following figures extracted from the books of Best Engineering Co. Opening Stock: (i) Raw Material 40.8/3/2017 Top 14 Cost Accounting Problems With Solutions Problem 2: ADVERTISEMENTS: Prepare a Cost Sheet for the year ended 31.3.350. 000.000. Materials destroyed by Fire 5. Printing & Stationary 10.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 6/47 .00.000.000. Wages paid 2. Carriage outward 3.000.500.000. Consumable Stores 10.8/3/2017 Top 14 Cost Accounting Problems With Solutions (ii) Work-in-Progress 15.000.590.000.500. Carriage inward 2. (ii) Work-in-Progress 14.500. Wages of Storekeeper 7.000. Office Manager’s Salary 10.010. Solution: Best Engineering Co. and (iii) Finished Stock 40.yourarticlelibrary.500. Warehousing charges 1.030.000. Cost Sheet: for the year ended 31. Legal charges 2. Power 10. Salary to Office Staff 20.000. Depreciation of Plant & Machinery 10. Expenses for participating in Industrial exhibition-6. Entertainment 2.500. Closing Stock: (i) Raw material 35.000 and (iii) Finished Stock 35.86 http://www.000.50.3. Repairs & Renewals 5.000. Cost incurred during the period: Materials purchased 2.000. Profit 25% on cost. Lighting for Office Building 2.000. Freight 5. yourarticlelibrary.8/3/2017 Top 14 Cost Accounting Problems With Solutions Problem 3: From the following figures relating to the manufacture of a Electronic Product during the month of July 1990.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 7/47 . prepare a statement showing Cost and Profit per unit: http://www. yourarticlelibrary. Problem 4: The following data are available for 2006: http://www.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 8/47 .000 = 2.000.8/3/2017 Top 14 Cost Accounting Problems With Solutions Solution: Working Notes: Calculation of Closing Finished Stock: Closing Finished Stock= Opening Finished Stock + Production – Sales = Nil + 20.000 – 18. (c) Variable selling overhead and fixed expenses will rise by 25% and Rs. What would be the cost per unit and selling price in 2007.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 9/47 .yourarticlelibrary.00.000 units.8/3/2017 Top 14 Cost Accounting Problems With Solutions It is expected that in 2007: (a) Production will be 1. respectively. (b) Prices of materials will go up by 33⅓%. 25.000. if it is desired to maintain the same rate of profit on sales as in 2006? Solution: Working: http://www. 000 + 25. 4 = 4.00 = Rs.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 10/47 .00 + 1.00.00 (iii) Fixed expenses in 2007 = 75.yourarticlelibrary. 4.000 = 1.00 + 25% of Rs. 5.8/3/2017 Top 14 Cost Accounting Problems With Solutions (i) Calculation for Material Cost per unit in 2007 (ii) Calculation for cost per variable selling overhead in 2007 Selling overhead increased by 25% i.e.000 (iv) Rate of profit on sales = 2/12 × 100 = 16⅔% Working Notes: (i) Variable overhead changed with production unit. http://www. selling overhead per unit in 2007 = Rs. 8/3/2017 Top 14 Cost Accounting Problems With Solutions (ii) Fixed expenses assumed related with office and administration.000 units Cost of Materials (per unit) – Rs.000 Annual cost of carrying inventory (including interest) – 10% of cost Solution: Problem 1(a): http://www. 250 Cost of placing and receiving order – Rs. 2. Cost Accounting Problem on Economic Ordering Quantity (2 Problems): Problem 1: From the following information calculate the Economic Order Quantity: Annual usage – 20.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 11/47 . 2.yourarticlelibrary. 691 units (approx).) Problem 2: From the following particulars determine the Economic Order Quantity: http://www. of average inventory cost. Frequency of order p.a. Solution: We know EOQ = √2AO/C A = Annual consumption = 75.375 . 18.000 × 18/0. = 28 (approx.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 12/47 .375 = 2. 1.8/3/2017 Top 14 Cost Accounting Problems With Solutions A manufacturer uses 75.a. You are required to determine the Economic Order Quantity and frequency of orders p. The material cost is Rs. 1-50 per unit and the carrying cost is estimated to be 25% p. EOC = √2 × 75. 18.5 = 0. The cost of placing an order is Rs.000 units of a particualr material per year.000 units O = Ordering cost per unit = Rs.yourarticlelibrary. C = Carrying cost per unit = 25% of Rs...a. Solution: The total cost of the inventory is minimum.8/3/2017 Top 14 Cost Accounting Problems With Solutions Additional information: (i) Annual consumption of materials = 2. 5 per order. i.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 13/47 . Rs. (ii) Carrying cost 10%. Therefore Economic Order Quantity = 500 units. 19. (iii) Ordering cost Rs.662- 50. when the ordering quantity is 500 units.yourarticlelibrary.e. 3. Cost Accounting Problems on Store Ledger (4 Problems): Problem 1: http://www.000 tonnes. 12.06.12. on 16.06 and another shortage of 10 kg on 26.8/3/2017 Top 14 Cost Accounting Problems With Solutions From the following particulars find out the value of closing stock when materials are issued under Simple Average Method: Solution: Problem 2: From the following details write Store Ledger under simple average method: The stock verifier found a shortage of 10 kg.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 14/47 . Solution: http://www.yourarticlelibrary. 8/3/2017 Top 14 Cost Accounting Problems With Solutions Problem 3: The particulars of receipts and issues of materials in a factory in January 2007 are: Pricing of issues is to be done on FIFO basis. A shortage of 10 kg was noticed on 16th January. Solution: http://www. Prepare the Store Ledger for the month of January 2007.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 15/47 .yourarticlelibrary. yourarticlelibrary. Solution: http://www.88 a shortage of 100 units was found.12.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 16/47 . Find the values of issues and resulting stocks on different dates using (i) LIFO.K. Corporation in respect of its raw materials for the month of December 1988: On 31. and (iii) Simple Average methods.8/3/2017 Top 14 Cost Accounting Problems With Solutions Problem 4: The following are the details supplied by J. (ii) FIFO. Rs.00 + Rs. 5. Rate of stock issued on 10.88 = Rs. 5 will not be considered as it has already been exhausted).com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 17/47 . (Here opening Stock rate i.12.00 + Rs.00/2 = Rs.yourarticlelibrary.88 = Rs.12. 6. 6.8/3/2017 Top 14 Cost Accounting Problems With Solutions Working Notes: 1.50 2. http://www. Value of stock issued on 31. 5.e. Solution: % of work done by the workers: A = 950/1. C = 960 units. Cost Accounting Problem on Wage Payment (2 Problems): Problem 1: Calculate total monthly remuneration of workers A.8/3/2017 Top 14 Cost Accounting Problems With Solutions 4.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 18/47 .yourarticlelibrary. The units completed by the four workers were as under: A = 950 units. D = 850 units. C and D on the basis of the following information for the month of January 2007: (i) Standard Production for each worker = 1.000 units (ii) Rate of wages = 10 paise per unit (iii) Bonus = Rs. 5 for each 1% increase over 90% of the standard.000 × 100 = 95% B = 900/1. B = 900 units. B. (iv) Dearness Allowance per month = 100% of piece wage.000 × 100 = 90% http://www. including those subsequently rejected. (c) The wage cost of each good unit produced.yourarticlelibrary. From the following. bonus hours are credited to the employee in the production of time taken which time saved bears to time allowed.8/3/2017 Top 14 Cost Accounting Problems With Solutions C = 960/1.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 19/47 . No overtime is worked and payment is made in full for all units worked on.000 × 100 = 85% Problem 2: In a factory bonus system. http://www. you are required to calculate for each employee: (a) The bonus hours and amount of bonus earned. (b) Total wage cost.000 × 100 = 96% D = 850/1. Jobs carried forward from one week to another. From the following particulars calculate Labour Hour Rate of each of the departments X. has three production departments X.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 20/47 . Y and Z: http://www. Cost Accounting Problems on Labour Hour Rate (3 Problems): Problem 1: Calcutta Engineering Co.yourarticlelibrary.8/3/2017 Top 14 Cost Accounting Problems With Solutions Solution: 5. Y and Z and one service department S. 000 Y: 125 × 8 × 5 = 5. Services rendered by the Service Department are to be apportioned to the production departments X 50%.000 http://www. of workers X: 125 × 8 × 7 = 7.yourarticlelibrary.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 21/47 . of working days × hours of daily work × No. Solution: Working Notes: 1. Y 25%. Labour hours worked = No.8/3/2017 Top 14 Cost Accounting Problems With Solutions There were 125 working days of 8 hours each. and Z 25%. com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 22/47 . Solution: http://www. respectively.000 2. Labour hour rates = Expenses/Labour hours worked Problem 2: Moonlight Engineering Company has three production departments. B and C and one service department S.yourarticlelibrary. B and C is in the ratio of 2: 2: 1.8/3/2017 Top 14 Cost Accounting Problems With Solutions Z: 125 × 8 × 5 = 5. A. Following are the particulars of a month of 25 working days of 8 hours each. Calculate the labour hour rate for each of the production departments: Service rendered by the service department to production departments A. of working days × Hours of daily work × No..400 2. Depreciation = 12% of Rs. 20.000 + Rs.8/3/2017 Top 14 Cost Accounting Problems With Solutions Working Notes: 1.000.000 = Rs. 3. 55.000 Z: 25 × 8 × 30 = 6. It was installed in a shop over ⅕th of its floor area at an additional cost of Rs.000 + Rs. Labour hours worked = No. respectively. 2. The working life of the machine as also the scrap value was estimated at 10 yrs and Rs. 5.000 Problem 3: A machine was purchased for Rs. 5.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 23/47 .000 = Rs.000 Y: 25 × 8 × 25 = 5. 20.. 6.yourarticlelibrary. 5. Total Assets value = Rs.000 + Rs.000 .000.000. http://www. 6. of workers: X: 25 × 8 × 20 = 4. yourarticlelibrary.200 but during the year it actually worked for 1.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 24/47 . the cost of power is Rs. 20 per 100 units and the machine consumed 10 units per hour. Cost Accounting Problems on Secondary Distribution (1 Problem): Problem 1: http://www. Normal working hours of the machine is estimated at 1. Solution: 6.000 hrs.8/3/2017 Top 14 Cost Accounting Problems With Solutions From the following details compute the Machine Hour Rate: It is estimated that the supervisor devotes one- fourth of his time for the machine. and S1 and S2. respectively.8/3/2017 Top 14 Cost Accounting Problems With Solutions XYZ Ltd.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 25/47 .yourarticlelibrary. From the following information prepare a statement showing primary distribution of overhead: Solution: 7. Cost Accounting Problems on Incentive Schemes (2 Problems): Problem 1: http://www. has two production and two Service departments namely P1 and P2. Calculate the factory works cost of the product under: (i) Rowan Plan and (ii) Halsey Scheme. The cost of material of the product is Rs. 6. The worker’s day rate is Rs. 20 and the overheads are recovered at 200% of the total wages.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 26/47 .00 per hour.yourarticlelibrary. Solution: Problem 2: http://www.8/3/2017 Top 14 Cost Accounting Problems With Solutions A worker takes 12 hours to complete a work on daily wages and 8 hours on a scheme of payment by results. 00 per hour plus a bonus under the Rowan Premium Bonus Scheme and Dearness Allowance of Rs. 205 = (30 – 25) hours = 5 hours Job No. Solution: Working Notes: (i) Time Saved Job No.A. 108 = (25 – 20) hours = 5 hours Job No.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 27/47 .8/3/2017 Top 14 Cost Accounting Problems With Solutions Production department of a company pays its workers standard wages @ Rs. 2.yourarticlelibrary. At the end of a particular week the time sheet of a worker is summarised below: Calculate the gross wages (including bonus and D. 12 = (5 – 3) hours = 2 hours http://www.) of the worker of the week. 50 per week of 55 hours. com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 28/47 . The departmental distribution summary showed the following expenses for June 2007: Production Departments: Solution: http://www. Maintenance and Time Keeping.8/3/2017 Top 14 Cost Accounting Problems With Solutions 8. Cost Accounting Problems on Idle Capacity Cost (1 Problem): Illustration 4: A manufacturing company has two production departments X and Y and three service departments: Store.yourarticlelibrary. Mitra & Co. sets per annum. What would be the optimum run size for unit manufacture? Solution: We know optimum run size or EBQ = √2AS/C where A = Annual production units = 100 × 300 = 30...V. to supply 4.800 T.8/3/2017 Top 14 Cost Accounting Problems With Solutions 9. EBQ = √2 × 30. K.000 S = Setting cost per unit = Rs. The cost of holding a doll is Rs. 3 C = Carrying cost per unit = Rs. a contractor got a contract to supply 100 wooden dolls per day to M/s R. 2 . Assume there are 300 working days in a year.yourarticlelibrary. http://www.a. 3. Cost Accounting Problems on Batch Costing (2 Problems): Problem 1: Rina. and the set-up cost of production is Rs. has made a contract with Mitra & Das Ltd.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 29/47 . 2 p.000 × 3/2 = 300 units Problem 2: Saha & Bose Ltd. 8/3/2017 Top 14 Cost Accounting Problems With Solutions It is estimated that the carrying cost per T.75 days = 55 days (c) Minimum inventory holding cost per annum http://www.yourarticlelibrary.800 × 648/12 = √2 × 4.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 30/47 . of set-up per annum Again.. Solution: (a) EBQ = √2AS/C = √2 × 4.. (c) The minimum inventory holding cost.800 × 54 = 720 (b) Time interval between two consecutive optimum runs = 365/No. Time interval between two consecutive optimum runs = 365/20/3 = 365 × 3/20 = 1. No.800/720 = 20/3 . 10 and that the set-up cost per batch is Rs. per annum will be Rs.095/20 = 54. 648.V. (b) The time interval between two consecutive optimum runs. of set-up per annum = Annual Production/EBQ = 4. Find out: (a) Economic Batch Quantity. 320 10. Cost Accounting Problems on Contract Costing (3 Problems): Problem 1: A construction company undertook two contracts namely Contract No. Prepare the Contract A/cs. the portion of the contracts was as follows: The total establishment expenses incurred during the year amounted to Rs. 25.1.000. Solution: http://www. On 31st December 2006. These are to be charged to the two contracts in proportion to wages.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 31/47 . 052. when the accounts were closed.06.06 and 1.7. respectively.yourarticlelibrary. 4.8/3/2017 Top 14 Cost Accounting Problems With Solutions 720/2 × 12 = Rs. on 1. 005 and Contract No. 052 = 2/3 × 72.000 = 37.000 × 1.40. 005 = 2/3 × 2.25.50. You are requested to prepare the Contract A/c and Contractee’s and Work-in- Progress A/c for the year ended 31st December 2006 from the following information: http://www. (a) Contract No.200 (b) Contract No.yourarticlelibrary.400 Problem 2: M/s Pine Corporation undertook a contract for Rs.000/2. 2.60.000/20.000 × 62.000 = 38.8/3/2017 Top 14 Cost Accounting Problems With Solutions Workings: Calculation for Profit to be charged to P/L A/c.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 32/47 .000. com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 33/47 .yourarticlelibrary. Solution: Workings: http://www. Other charges are charged as a proportion of direct wages.8/3/2017 Top 14 Cost Accounting Problems With Solutions 10% of value of material and 15% of wages may be considered as being incurred for the proportion of works completed but not certified. 50.” It was found that since the date of signing of the contract the price of material and rate of wages increased by 25%. the contract price would be increased accordingly by 25% of the rise in the cost of materials and wages beyond 10% in each case.8/3/2017 Top 14 Cost Accounting Problems With Solutions Problem 3: XYZ Ltd. 7.1.06.yourarticlelibrary.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 34/47 . At the end of the year the following information were collected: The above contract contained an escalator clause: “In the event of price of raw material and rates of wages increased more than 10%. The value of the work certified http://www. obtained a contract for Rs.000 on 1. As the wages and material cost increased by Rs.800 = 8.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 35/47 . 34. http://www.700.yourarticlelibrary.8/3/2017 Top 14 Cost Accounting Problems With Solutions should not be considered in the effect of escalator clause. Solution: Workings: (i) Calculation for the amount of Contract Price increased due to Escalation Clause.800 beyond escalation clause the contract price will be increased by 25% of Rs. 34. 100.yourarticlelibrary. From the following data prepare the Process A/c’s: Solution: http://www. 11. Cost Accounting Problem on Process Costing (3 Problems): Problem 1: Product A passes through two processes I and II and then to Finished Stock.000 = 2/3 × 1.200 × 3/4 = 62.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 36/47 .00.000/3.8/3/2017 Top 14 Cost Accounting Problems With Solutions (ii) Calculation for Profit to be charged to Profit & Loss A/c = 2/3 × 1.25.24.24.200 × 2. The details of the processes are: Solution: Problem 3: http://www.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 37/47 .8/3/2017 Top 14 Cost Accounting Problems With Solutions Problem 2: Mukherjee & Co. produces an article through two processes X and Y which is then sent to the finished stock.yourarticlelibrary. yourarticlelibrary. Cost Accounting Problems on Normal Loss.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 38/47 . Process Y and Process Z: http://www.8/3/2017 Top 14 Cost Accounting Problems With Solutions Solution: 12. Abnormal Loss and Abnormal Gain (1 Problem): Illustration 1: The following are the details of Process X. yourarticlelibrary. Solution: http://www.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 39/47 .8/3/2017 Top 14 Cost Accounting Problems With Solutions Stock in process is valued at Prime Cost and Finished stock at the price at which it is received from process III. Find out the amount of provision to be made to offset the inter-process profits added. A product passes through three processes before it is transferred to Finished Stock. Cost Accounting Problems on Inter-Process Profit (1 Problem): Problem 1: The following illustration will be helpful to understand how to calculate the inter-process profit.yourarticlelibrary.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 40/47 .8/3/2017 Top 14 Cost Accounting Problems With Solutions 13. The following details for January 1992 are available: http://www. 000 × 12.40. Find out the amount of provision to be made to offset the inter-process profits added.000 http://www.8/3/2017 Top 14 Cost Accounting Problems With Solutions Stock in processes is valued at Prime Cost and Finished Stock at the price at which it is received from process III.000 = 2. Solution: Note: Profit on Closing Stock: 40.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 41/47 .000/2.yourarticlelibrary. 60.000/6.000 × 30.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 42/47 . Cost Accounting Problems on Equivalent Production (1 Problem): Illustration 1: http://www.000 = Rs.42.000 Statement showing the amount of provision to be made to offset the inter-process profits added: 13.yourarticlelibrary. 11.8/3/2017 Top 14 Cost Accounting Problems With Solutions Profit on Closing Stock = 2. 95.000.yourarticlelibrary. 17.4.8/3/2017 Top 14 Cost Accounting Problems With Solutions The following information is available regarding process X during the year ended 31.3. Overhead Rs. Solution: http://www.000 Cost for the year 94-95 Material Rs.000. Production Records: Cost Record: Work-in-process as on 1. Labour Rs.500 Prepare the (a) Statement of Equivalent Production (b) Statement of Cost for each element (c) Statement of Evaluation. 25.500 Labour Rs.000 Overhead Rs.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 43/47 .94: Material Rs. 35. 15. 12. 60. yourarticlelibrary. The following data were available: http://www.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 44/47 .8/3/2017 Top 14 Cost Accounting Problems With Solutions 14. Cost Accounting Problems on Apportioning Total Process Costs (2 Problems): Problem 1: In the process line of XY Company three joint products are produced for the month of May 1990. The joint products are manufactured in one common process. You are required to prepare a statement showing the estimated profit or loss for each product and in total.8/3/2017 Top 14 Cost Accounting Problems With Solutions Pre-separation point costs amounted to Rs. Solution: Problem 2: From the following information.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 45/47 . 20. The pre-separation point costs are apportioned to joint products according to weight. after which they are separated and may undergo further individual processing.000.yourarticlelibrary. find the profit made by each product apportioning joint cost on sales value basis: http://www. 67.000/2.20.000 × 1..yourarticlelibrary. Joint Cost should be borned by: Product A = 1.040 http://www.600 = 67.32.000/2.560 Product B = 88.com/cost-accounting/problems-cost-accounting/top-14-cost-accounting-problems-with-solutions/75727/ 46/47 .00.67.600 = 1..000 × 1.20.8/3/2017 Top 14 Cost Accounting Problems With Solutions Solution: . TOS 7.8/3/2017 Top 14 Cost Accounting Problems With Solutions Before publishing your articles on this site. Privacy Policy 8. please read the following pages: 1. 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