PROBLEM 01: (Normal Loss, Abnormal Loss and Abnormal Gain:

The product of company passes through three distinct processes to completion. They are known
as A, B and C. from past experience it is ascertained that loss is incurred in each process as:
Process A-2%, Process B-5%, Process C-10%. In each case the percentage of loss is computed
on the number of units entering the process concerned. The loss of each process possesses a
scrap value. The loss of processes A and B is sold at Rs. 5 per 100 units and that of process C at
Rs.20 per 100 units. The output of each process passes immediately to the next process and the
finished units are passed from process C into stock.

Process A (Rs) Process B (Rs.) Process C (Rs)

Materials consumed 6,000 4,000 2,000
Direct Labor 8,000 6,000 3,000
Manufacturing expenses 1,000 1,000 1,500
20,000 units have been issued to process A at a cost of Rs.10, 000. The output of each process
has been as under: Process A 19,500; Process B 18,800; Process C 16,000. There is no work-
in-progress in any process. Prepare Process Accounts. Calculations should be made to the nearest
rupee.

PROBLEM 02:INTER PROCESS PROFITS:

PROBLEM 03: (Normal / Abnormal Loss and Abnormal Gain) (HW)
The product of a company passes through 3 distinct process. The following information is
obtained from the accounts for the month ending January 31, 2008.

3000 units @ Rs. 3 each were introduced to process – I. There was no stock of materials or work
in progress. The output of each process passes directly to the next process and finally to finished
stock A/c.
The following additional data is obtained:

Prepare Process Cost Account, Normal Cost Account and Abnormal Gain or Loss Account

PROBLEM 04: (WITH OPENING AND CLOSING WORK IN PROGRESS WITHOUT

ABNORMAL LOSS) EQUIVALENT PRODUCTION (AVERAGE COST METHOD)
PROBLEM 04: (WITH OPENING AND CLOSING WORK IN PROGRESS WITH
ABNORMAL LOSS) EQUIVALENT PRODUCTION (AVERAGE COST METHOD)

PROBLEM 05: (WITH OPENING AND CLOSING WORK IN PROGRESS WITH

ABNORMAL LOSS) EQUIVALENT PRODUCTION (FIRST IN FIRST OUT METHOD)
PROBLEM 05: (WITH OPENING AND CLOSING WORK IN PROGRESS WITH
ABNORMAL GAIN) EQUIVALENT PRODUCTION (FIRST IN FIRST OUT METHOD)
PROBLEM 06: (WITH OPENING AND CLOSING WORK IN PROGRESS WITH
ABNORMAL LOSS) EQUIVALENT PRODUCTION (LAST IN FIRST OUT METHOD)