# ACCA F2 Revision part 4 Process Costing

#### Revision notes page used in this lecture

1. says

Sir, i dont get this question.
A business operates a job costing system and has the aim of making a net profit of 30% of sales. The cost estimates for one particular job are as follows :
DM : 80 kg at \$5 per kg
DL : 40 hours at \$6 per hour
The total overheads are budgeted at \$120K and are absorbed on the basis of direct labour hours. The budgeted labour hours are 50,000.
What price should be quoted for this job? (to the nearest \$)?

• says

This is not a process costing question – please post questions like this in the F2 Ask the Tutor Forum and not as a comment on a process costing lecture.

DM: 80 x 5 = 400
DL: 40 x 6 = 240
Overheads: 40 x 120000/50000 = 96

Total cost – 736

For 30% profit on sales, selling price = 736 x 100/70 = 1052

2. says

units \$
Materials 8,000 20,000
Labour o/h 3,840
Normal loss (10%) (800) (800)
7,200 \$23,040
There is a mistakes in answer
Materials 8000 20 000
Labour O/H 3840
———————
Overheads 8000 8000 (Here it should be 23840 not 8000)
Normal Loss (800) (800)
——————-
7200 \$ 23040

• says

There is no mistake in the answer – both the lecture and the printed answer are correct.

(I have no idea where your 8000 overheads come from at all )

3. says

Hi, um i seem to have noticed that the scrap value lost because of the abnormal gain was not accounted for…
\$1 x 100 = 100 scrap -ve cost lost.

• says

@danishtaleef, It does not need to be accounted for separately.
The scrap proceeds brought in are for what was actually lost (which is the normal loss less the abnormal gain).