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Process Costing Excel Example

The document provides cost information for two processes - Process I and Process II. It gives details of raw materials used, direct labor costs, manufacturing overheads, normal losses and scrap realization values. It then calculates the per unit cost and total cost for each process. The closing inventory is also calculated based on the units produced, units sold and the per unit cost of Process II.

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177 views3 pages

Process Costing Excel Example

The document provides cost information for two processes - Process I and Process II. It gives details of raw materials used, direct labor costs, manufacturing overheads, normal losses and scrap realization values. It then calculates the per unit cost and total cost for each process. The closing inventory is also calculated based on the units produced, units sold and the per unit cost of Process II.

Uploaded by

hub sportx
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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The entity has provided the following information & wants to know the cost involved in each process.

Also, it
wants to calculate the value of closing inventory

Particulars Process I Process II


Raw materials used 11,500
Raw materials cost per unit $20.00
Production & transfer 9,500 8,500
Normal Loss (of inputs) 5% 5%
Direct Labour $115,000.00 $95,600.00
Direct expenses (% of direct labour) 75% 80%
Manufacturing overheads (% of direct labour) 15% 10%
Realisation Value of Scrap per unit $2.50 $8.50

Number of Finished Goods Produced 8,200


Profit on cost 10%

Solution

Process I Amount Units


Cost of raw Materials $230,000.00 11,500
Direct Labour $115,000.00
Direct expenses $86,250.00
Manufacturing overheads $17,250.00
Subtotal $448,500.00 11,500
Less:
Realisation from normal Loss of inputs $1,437.50 575
Subtotal $447,062.50 10,925
Per unit cost $40.92
Number of Units for Process I 9,500.00
Cost for Process I $388,750.00
Balance cost is abnormal cost $58,312.50

Process II Amount Units


Cost from Process I carried over $388,750.00 9,500
Direct Labour $95,600.00
Direct expenses $76,480.00
Manufacturing overheads $9,560.00
Subtotal $570,390.00 9,500
Less:
Realisation from normal Loss of inputs $4,037.50 475
Subtotal $566,352.50 9,025
Per unit cost $62.75
Number of Units for Process II 8,500.00
Cost for Process II $533,406.79
Balance cost is abnormal gain $32,945.71

Closing Inventory Amount


Cost per unit $62.75
Units produced 8,500
Units sold 8,200
Closing Units 300
Cost of Closing Inventory $18,826.12
process. Also, it

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