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Process costing




               Step 4 – value the output and complete the process account

                                              Process account
                                     Kg          $                           Kg          $
               Materials           1,000      18,000      Output              900      20,520

               Labour                           1,800     Normal loss         100          180

               Overheads                          900
                                   –––––      ––––––                       –––––       ––––––
                                   1,000      20,700                        1,000      20,700

                                   –––––      ––––––                       –––––       ––––––

               Step 5 – complete the normal loss (scrap) account

               This is the account where the value of the cash received for the scrap is recorded

                                       Normal loss (scrap) account
                                       Kg          $                          Kg          $

               Process account        100        180       Cash/Bank          100        180
               (NL)
                                     ––––       ––––                        ––––        ––––

                                      100        180                          100        180
                                     ––––       ––––                        ––––        ––––







































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