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Process Account R

In January 2007, SAMSON & CO. processed 500 units with a total cost input of Rs. 25,000, resulting in a normal loss of 75 units valued at Rs. 2,325. The good output was 425 units, calculated at a cost of Rs. 53.35 per unit after accounting for the scrap value of the normal loss. The cost per unit reflects the total input costs minus the scrap value of the normal loss.

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6 views2 pages

Process Account R

In January 2007, SAMSON & CO. processed 500 units with a total cost input of Rs. 25,000, resulting in a normal loss of 75 units valued at Rs. 2,325. The good output was 425 units, calculated at a cost of Rs. 53.35 per unit after accounting for the scrap value of the normal loss. The cost per unit reflects the total input costs minus the scrap value of the normal loss.

Uploaded by

karthikeyan.g6175
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

SAMSON & CO.

Process Account - Process 'R'


For the Month of January 2007

Input Details
Particulars Amount (Rs.)
Materials (500 units) 10,000
Labour 8,000
Indirect Expenses 7,000
Total Cost Input 25,000

Loss Calculation
Input Units (Normal Loss @ 15%) 500
Normal Loss Units (500 × 15%) 75
Scrap Value per Unit Rs. 31
Total Scrap Value (75 × 31) 2,325
Good Units Output (500 - 75) 425

Cost per Unit Calculation


Total Input Cost 25,000
Less: Scrap Value of Normal Loss (2,325)
Net Cost (Good Output) 22,675
Good Units Output 425
Cost per Unit (22,675 ÷ 425) Rs. 53.35

Process 'R' Account


Debit Side Units Amount (Rs.)
To Materials 500 10,000
To Labour - 8,000
To Indirect Expenses - 7,000
Total 500 25,000

Credit Side Units Amount (Rs.)


By Normal Loss (75 units @ Rs. 31) 75 2,325
By Good Output (425 units @ Rs. 53.35) 425 22,675
Total 500 25,000

Summary
Normal Loss: 75 units valued at scrap value of Rs. 31/unit = Rs. 2,325
Good Output: 425 units at a cost of Rs. 53.35 per unit
The cost per unit includes materials, labour, and indirect expenses net of normal loss scrap
value.

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