process costing project repot

8/10/2019 process costing project repot

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PARMAR ARJAN S

PREFACE

As a part of the course curriculum the T.Y. B.B.A students arerequired to prepare a group project for the paper of practical studies.For this particular report, we are required to do an analysis on anyspecific industry by gathering and analyzing primary and secondarydata. Through this in depth study of A !"AT# Y$%T&FF!" &%T'!$%, ! ha(e been able to relate (arious managementaspects.

For this purpose, our M.J. COLLEGE OF COMMERCEaffiliated to Bha(nagar &ni(ersity, Bha(nagar, arranged )* days of training programme which is necessary for any B.B.A student. This isin order to sharpen our s+ills and to bridge the gap of the theory andpractice. ! ha(e completed my training at A !"AT# Y$%T&FF!" &%T'!$%.-

y project report will gi(e brief details with clear objecti(es of allthe departments of A !"AT# Y$%T&FF !" &%T'!$% with its

current affairs and wor+ing.

! ha(e recei(ed all information and co/operation from the staff members. ! hope so this report fulfills need of the educationalrequirements.

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DECLARATION

! PARMAR ARJAN S student of M.J. COLLEGE OFCOMMERCE of T.Y.BBA hereby declare that ! ha(e undergone theindustrial training at ADINATH DYESTUFF INDUSTRIES - and ta+entraining from 012**2)0*0 T3 )12**2)0** i.e. for 21 days. uring thistraining ! was guided by MISS.SWATI MEDAM coordinator of our college. ! ensure that whate(er details presented in this project reportis based on my training and information pro(ided by the concernedorganization.

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%tudent6s %ign

4A' A' A'7A"

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ACKNOWLEDGEMENT

8ratitude is certainly to be placed on record at the right timewith the right sense of morality. uring the perse(erance of thisproject, ! was supported by different indi(iduals whose names if notmentioned would be inconsiderate on my part.

! would li+e to e9tend our sincere gratitude and also ! amthan+ful to 4rincipal of Dr K.S. VATALIYA And SWATI MEDAMcoordinator of BBA, who initiated me into the project of ADINATHDYESTUFF INDUSTRIES -. !t is indeed been a great learninge9perience wor+ing under his guidance during the course of project. !than+ him for his in(aluable ad(ice and guidance that he pro(ided methroughout the completion of this project.

! would also li+e to than+ r. JASVANTRAI P. GANDHI , thePartn r of ADINATH DYESTUFF INDUSTRIES for his greatassurance for ma+ing the project e(ergreen.

! would also li+e to than+ the librarian of my college, my collegefriends : of course my family members who ga(e me all the supportand bac+ing and always came forward whene(er a helping hand wasneeded.

;astly, ! would li+e to than+ all those who directly or indirectlyhelp me in gi(ing final touch up to the project report.

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HISTORY ! DEVELOPMENT OF THE UNIT

2s A !"AT# Y$%T&FF !" &%T'!$% is a partnership firmestablished in *


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SI"E OF THE UNIT AND FORM OF THE ORGANI"ATION

S#$ %& t' Un#t( )

ainly, there are three types of the sizes of the unit. They areas follows5 /

;arge %cale &nit edium %cale &nit %mall %cale &nit

!n large scale unit, in(estments are abo(e E crores. !n mediumscale unit, in(estments are from * crore to E crores. !n small scaleunit, in(estments does not e9ceed * crore.

Adinath yestuff !ndustry is a small scale unit manufacturingand e9porting reacti(e : synthetic organic dyes.

F%r* %& t' Or+an#$at#%n( )

$(ery economic acti(ity is carried out by organization. Thereare (arious forms of organization. They are5 /

%ole 4roprietorship firm 4artnership firm 7oint %toc+ >ompany

>o 3perati(e %ociety

!n %ole 4roprietorship there is only one owner. !n 4artnershipfirm there are minimum ) and ma9imum )0 members. !n >o 3perati(e society there has been minimum ) and ma9imum *0members.

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Adinath yestuff !ndustry is a partnership firm whichmanufactures and e9ports reacti(e and synthetic organic dyes.

MANUFACTURING PROCESS

'aw material li+e #ydrochloric acid, (inyle sulphone, sodiumnitrate soda ash, sodium bi/ carbonate, #.>.;. and other raw materialalong with water and ice mi9ed in (essel by coupling. Then the saidliquid solution goes to spray dryer through screw pump for spray byhot air generator.

The said crude material in powdered form goes to ball mill for mi9ing and adding the other material li+e sodium sulphate and de/dusting oil as per customer6s standards.

The finished goods of reacti(e dyes pac+ed in drums and cartonsas per customer6s requirement. This material is ready for dispatch.

MANUFACTURING PROCESS

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DETAILS OF MACHAINARY

*. B#+ ,#$ , - ,, ( The raw materials brought into the factoryare opened on to the ground as per the requirement then itpoured into the (essel where it mi9es one with another.

). P#/ #n ( The abo(e materials are mi9ed and then ta+eninto the 4ipeline which passes through pipe to %pray yers.

?. S/ra0 Dr0 r( The abo(e materials are hooted up with thehelp of boiler into it.

=. H%t A#r G n rat%r( !n this process it is used in themanufacture of %.3. yes which ha(es producing capacity of about ) ;acs Lilo calary per hour.

E. Ba M# ( Ball mill is used to ma+e abo(e mentionedmaterials standardized and to some e9tent fines.

@. La %rat%r0( !t is the place where ;ab Technicians measurestrength and shades through spectrometer.

. Pa 3#n+( The abo(e materials are pac+ed in # 4$rums2Bags as per the buyer6s instructions.

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MANUFACTURING PRODUCTS

SHADE(4.0%)

V.S.DYES L I

G H T ( 1 / 1 )

W A S H I N G

( ! " 4 ) P

# $ ! % $ & ' "

H P *

.

D ! + , & $ - # & ' 0

ELL*W G( #//.- 42) 5 5 5 1 G

ELL*W GR ( #//.- 15) 6 5 5 1 G

G. ELL*W RNL(*$& #- 107) 5 4.5 5 1 G

*RANGE 2R 5 4.5 5 1 G

*RANGE 3R (*$& #- 16) 6 4.5 4.5 1 G

RED 2G(R# - 106) 4 5 5 1 G

RED 5

(R# - 35)4 5 5 1 G

RED 3(R# - 180- A) 5 4 5 1 G

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RED R(R# - 1 8- A) 5 4 5 1

L E 3R ( / #- 28) 7 4.5 4.5 3 G

T- L E G( / #- 21) 6 4 4.5 3

D L E HR ( / #- 8 ) 6 4 4 1 G

LA ( /&+9- 5) 5 5 5 1 G

LA N- 150 5 5 5 1 G

These are Jinylsulphone based dyes and are (ery popular becauseof brilliancy, reproducibility of shades : can be applied by dyeing :printing.

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SHADE(4.0%)

MEDYES

L I G H T ( 1 / 1 )

W A S H

I N G

( ! " 4 )

P # $ ! % $ & ' "

H P *

.

D ! + , & $ - # & ' 0

ELL*W ME 4 G( #//.- 160 A) 6-7 4 4-5 1

G. ELL*W MER ( #//. 145) 6-7 5 5 3

*RANGE ME2 R (*$& #- 122) 5 4-5 4 2 P

RED ME4 (R# - 1 5) 5 4-5 4 3 P

RED ME6 (R# - 250) 5 4 4 3-4 P

N- L E ME2 G( / #- 1 4) 5 5 4 1 P

LA

H GR 5 5 5 1 G

These are a bifunctional dye which gi(es high le(el fi9ation : has(ery good fastness properties which can be applied at =0 0> to @0 0>.

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SHADE(4.0%)

MDYES

L I G H T ( 1 / 1 )

W A S H

I N G

( ! " 4 )

P # $ ! % $ & ' "

H P *

.

D ! + , & $ - # & ' 0

ELL*W M4G( #//.- 22) 5-6 5 4.5 1 G

*RANGE M2R (*$& #- 4) 5 5 4 3 P

RED M5(R# - 2) 4-5 4-5 4-5 1

RED M8(R# - 11) 4-5 4-5 4-5 4 P

MAGENTA M(: "/#'- 13) 4-5 4 5 3

N. L E M3R 6 4 5 3 P

These are highly reacti(e dyes and mainly used for dyeing.

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SHADE(4.0%)

HEDYES

L I G H T ( 1 / 1 )

W A S H

I N G

( ! " 4 )

P # $ ! % $ & ' "

H P *

.

D ! + , & $ - # & ' 0

ELL*W HE 4 G( #//.- 81) 5-6 5 4-5 2

G. ELL*W HER ( #//.- 84A) 6 5 4 3

*RANGE HER (*$& #- 84) 4-5 5 3 3 P

RED HE 7 (R# - 141) 4-5 4 4 3 P

RED HE 8 (R# - 152) 4-5 4 4.5 2 P

GREEN HE 4 (G$## - 1 A) 4 3 4 2

N. L E HER

( / #- 171)5 4-5 4-5 3

These are high e9haust dyes with high fi9ation efficiency. These dyesha(e superior light, wash : rubbing fastness which can be applied at10 0> to 1E 0>.

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SHADE(4.0%)

HDYES

L I G H T ( 1 / 1 )

W A S H

I N G

( ! " 4 )

P # $ ! % $ & ' "

H P *

.

D ! + , & $ - # & ' 0

ELL*W H 4 G( #//.- 18) 6-7 5 5 1 G

G. ELL*W HR (*$& #- 12) 6 5 5 3

*RANGE H2R (*$& #- 13) 4-5 5 4 4

RED H 8 (R# - 31) 4 5 4 3-4 P

N. L E R;( / #- 5 ) 4-5 4-5 4 3 P

LA HN( /&+9- 8) 5 4-5 4-5 3-4 P

These are less reacti(e dyes and are used for dyeing as well asprinting.

NOTE( / Lindly see anne9ure for colour samples.

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ORGANI"ATION STRUCTUREORGANI"ATION STRUCTURE

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MANAGING DIRE T*R (JAS:ANTRAI P. GANDHI)

GENERAL MANAGER (M*HANSINH T. G*HIL)

HIE A * NTANT(RAMESH HAI D. GANDHI)

ENTRAL E; ISE*NS LTANT

(AR NSINH N. RATH*D)

HIE HEMIST( AT GIRI A. GA SWAMI)

S PER:IS*R (HARJI HAI G. AM HANI A)

W*R ERS LER (:ASANT HAI L. MA WANA)


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TIME KEEPING SYSTEM

Time +eeping system is one of the important functions whiche(ery organization tries to maintain whether it may be a small scaleor a big scale industry. !t is also an important function also for theemployees for the organization. The organization can achie(e itsgoals and achie(e its success if the wor+ing of time +eeping systemof a firm is perfectly set.

Adinath yestuffs !ndustries also ha(e a beneficial time for the

employees as well as for the employees. The unit is been in only theone shift and it sometimes mo(es to two shifts as per the order of thecustomers. They +eep a regular attendance register for the record for their employees. The employees ha(e to sign the register when theyenter the factory and when they lea(e the factory. The register isregularly been chec+ed by the . . at some inter(als.

O& T#*#n+,( )


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CONTRIBUTION OF THE UNIT TO THE INDUSTRY

Adinath yestuffs !ndustries is an oldest manufacturing unit for reacti(e : organic dyes. Being a small scale unit, it also tries topro(ide some facilities to society and the surroundings of ahu(acity. !t has established new machineries of latest technology for thefast and safe wor+ for their wor+ers. !t6s )EM of trade is done in localregion while it6s EM of trade is done internationally. %o its productsare being e9ported world wide. Thus, manufacturing and e9porting of reacti(e : organic dyes has been pro(ed beneficial for the industry in

!ndia as well as abroad. Apart from this, it also gi(es physical as wellas financial help to their employees as and when needed.

!t can be said that Adinath yestuffs !ndustries has also beencontributed a lot for the de(elopment of the industry. There ha(e beenthe noticeable contributions from the side of the company. Thus,

Adinath yestuffs !ndustries contributes well to the industry.

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INTRODUCTION

Finance is the life blood of modern business. Finance isrequired to purchase e9pensi(e machinery, and also for day to daye9penses on raw materials, labour and operational andadministrati(e needs of business. All the abo(e functions are carriedout at the top le(el in the organization and so the management of finance is also done at the top le(el management or is carried out bythe finance manager, if any.

D n#t#%n,( )

Financial management means rising of adequate funds at theminimum cost and using them effecti(ely in the business.-

Financial management is concerned with the efficient use of animportant economic resource, namely, >apital Funds.-

!n Adinath yestuff !ndustries, Financial anagement ishandled by their well qualified . so their financial position is (erygood. All the acti(ities relating to finance are well planned by thefinancial management. Adinath yestuff !ndustries is ha(ing aseparate financial department. The main aim of this department is toraise finance at the right time and in right quantity and also to use itmost effecti(ely. And so the financial department carries and sol(esall the functions relating to finance. Finally it can be said that financialmanagement also plays an important role in the organization.

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ORGANIZATION OF THE FINANCE DEPARTMENT ORGANIZATION OF THE FINANCE DEPARTMENT

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GENERALMANAGER

HIEA * NTANT

ASSISTANTA * NTANT 1 ASSISTANT

A * NTANT 2

LER

AN ASH


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INVENTORY ! ACCOUNTING METHOD

In- nt%r0 * t'%4( )

This is one of the most important factors in the organization. !nsimple words, !n(entory means the %toc+. The method of recordingthe stoc+ is +nown as !n(entory ethod.

!n Adinath yestuff !ndustries, this method is being wellimplemented. !n / coming and out going of each and e(ery item arerecorded in register.

Accounting ethod5 /

As per the rule of 8o(ernment of !ndia, on e(ery ?* st arch theboo+s of accounts are closed and got being audited by the >harteredaccountant and as per the account statement of >.A. the unit pays itsdue of !ncome Ta9.

!n Accounting ethod, profit is regarded as the re(enuerealized during the period minus the actual costs and e9pensesincurred in producing the re(enue. This concept of profit is also+nown as the residual concept.

!n Adinath yestuff !ndustries, this method is also being wellimplemented.

Thus it can be said that it depends on the type and firm of theorganization as how to implement the particular method.

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MANAGEMENT OF FI6ED ASSETS

Fi9ed assets are those assets which are for long term usageand are (ery e9pensi(e. Fi9ed assets play a (ery important roleduring the closing of the unit. achinery, land, building, motor car or bi+es, furniture etc. are the e9amples of fi9ed assets. Fi9ed assetsare also the way to raise the >apital fund of an organization. At last, itcan be said that, fi9ed assets are the important resources of anorganization and also plays a crucial role in the profit of anorganization.

Fi9ed assets consist of the cost of e9penditure on the followingassets such as5 /

;and

Building

8oodwill

;easeholds

4lants : machinery

Furniture : fittings

4atents, trademar+s : designs

;i(e stoc+ : (ehicle etc!n Adinath yestuffs !ndustries, management of fi9ed assets is

ta+en good into consideration. As Adinath yestuffs !ndustries is asmall scale industry, although its in(estment in fi9ed assets is (eryhigh.

As the in(estment of Adinath yestuffs !ndustries in fi9edassets is (ery high, it is ha(ing a strong : good financial position inbusiness.

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Capital = Total Assets Current Liabilities .

FINANCIAL PLANNING

Financial planning is primarily a statement estimating theamount of capital and determining its composition. The responsibilityof framing the financial plan rests with the top le(el management inthe organization. Githout a detailed financial plan, the lower andmiddle le(el management may de(elop its own policies and

procedures which would create confusion and waste such as loss of time, goodwill and financial resources.

The factors ta+en into mind while de(eloping the financial plan are asfollows5 /

Analysis of past performance

8o(ernment policies

Alternati(e sources of finance

egree of ris+

Forecasting cash flows

Nuantifying in(estment needs

Attitude of the management

!n Adinath yestuffs !ndustries, the financial planning is done bythe managing director ta+ing in mind all the abo(e factors. Thuswe can say that Adinath yestuffs !ndustries is also been the partof the Financial 4lanning.

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CONCLUSION

At the completion of my project, ! would li+e to conclude thatthis project report is being made on the basis of the informationgi(en from the Adinath yestuffs !ndustry. This industry is so well

organized and managed that its products are accepted in nationalas well as in international mar+ets. ! can surely say that thisindustry is financially sound and ha(ing efficient : effecti(emanagement body that it has fair relations with its employees :wor+ers.

%o ! am (ery much grateful to the Adinath yestuffs !ndustriesfor ha(ing such a nice training : tremendous support. Thus mybest wishes to Adinath yestuffs !ndustries to reach the pea+ of success : prosperity.

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INTRODUCTION

!n those industries where product passes through distinctstages of production, the method of costing employed to ascertaincost of production at each stage is +nown as 4rocess >osting. !t ispossible to ascertain the total desirable. ifferent quantities and typesof by products and wastages arise in (arious processes, whichma+es it desirable to find out separate cost of each process or

operation for each unit. This method is used by industries wherethere is a continuous flow of identical products and it is not possibleto distinguish one unit from another. There are numerous industriesusing process costing, some of which are cost of the product e(en inthese industries, which is not as follows5 te9tiles, chemical wor+s,soap/ ma+ing, paints manufacturing, fertilizer industries etc.

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CONCEPT AND MEANING OF PROCESS COSTING

The method of cost accounting used by processing firms iscalled process costing system. For each process function, productcosts lie direct materials, direct labor and factory o(erheads areaccumulated under process costing method. For instance, theprocessing of a herbal medicine includes herbs processing, herbsmi9ing, herbs medicine ma+ing and pac+ing.

Ascertainment of process costs facilitates to control costs, e(aluateperformance and efficiency of each process. The cost of productionascertained is compared with the pre(ailing mar+et price of similar products to assess performance. A constant reference of costs byelements is needed to assess efficiency and performance of eachprocess. The purpose of assessing efficiency and performance of each process can be achie(ed if a separate process account is

maintained for each process. The process account so maintainedpro(ides necessary cost information essential for controlling the costsand e(aluating performance and efficiency of each process.4rocess accounting helps a manufacturing firm to ascertain the costof production and the cost per unit of output at each stage of process.The output of one process forms an input to the ne9t process.Transferring the output to the ne9t process continues until the finalprocess produces finished products

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APPLICATION OF PROCESS COSTING

4rocess costing is appropriate for companies that produce acontinuous mass of li+e units through series of operations or process.

Also, when one order does not affect the production process and astandardization of the process and product e9ists. #owe(er, if thereare significant differences among the costs of (arious products , aprocess costing system would not pro(ide adequate product/costinformation.

>osting is generally used in such industries such as

4etroleum >oal mining

>hemicals

Te9tiles

4aper

4lastic

8lass

4aints manufacturing

Biscuit wor+s

%oap ma+ing

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Fertilizer industries etc

REASONS FOR USE

>ompanies need to allocate total product costs to units of product for the following reasons5

A company may manufacture thousands or millions of units of product in a gi(en period of time.

4roducts are manufactured in large quantities, but products

may be sold in small quantities, sometimes one at a timeautomobiles , loa(es of breadC, a dozen or two at a time eggs,coo+iesC, etc.

4roduct costs must be transferred from Finished 8oods to >ostof 8oods %old as sales are made. This requires a correct andaccurate accounting of product costs per unit, to ha(e a proper matching of product costs against related sales re(enue.

anagers need to maintain cost control o(er the manufacturingprocess. 4rocess costing pro(ides managers with feedbac+ thatcan be used to compare similar product costs from one monthto the ne9t, +eeping costs in line with projected manufacturingbudgets.

A fraction/of/a/cent cost change can represent a large dollar change in o(erall profitability , when selling millions of units of product a month. anagers must carefully watch per unit costs

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on a daily basis through the production process, while at thesame time dealing with materials and output in huge quantities.

aterials part way through a process e.g. chemicalsC mightneed to be gi(en a (alue, process costing allows for this. Bydetermining what cost the part.

FUNDAMENTAL PRINCIPLES ! PROCESSCOSTING

The following are the fundamental principles of process costing5/

*. >ost of materials, wages and o(erhead e9penses are collectedfor each process or operation in a period.

). Adequate records in respect of output and scrap of eachprocessor operation during the period are +ept.

?. The cost per finished output of each process is obtained byde(iating the total cost incurred during a period by the number of units produced during the period after ta+ing intoconsideration the losses and amount realized from sale of scrap.

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Pr%45 t#%n %- r' a4(

The o(erhead element of total cost is generally (ery high inprocess costing great care is required to ensure that each process ischarged with a reasonable share of production o(erhead. The actualo(erheads are debited to each process account.

FEATURES OF PORCESS COSTING

4roduction is continuous in a series of stages called processes.

$ach 4rocess is deemed as a cost centre and costs are

accumulated for each process separately along with finished

output and in progress.

4roducts and 4rocesses are standardized.

The output of one process becomes the raw material to the

ne9t process, usually till the final product is completed.

The cost of the pre(ious process is transferred to the ne9tprocess along with the output. %ometimes, the transfer may be

at a transfer price inclusi(e of profit.

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There may be process losses of the input. They may be normal

or abnormal or both.

>ompleted and semi/finished goods must be e9pressed in

common terms for cost determination.

%ince 4roduction is of identical units, the total cost of a process

is to be di(ided with the unit of output to obtain the a(erage cost

per unit.

Two or more products may be produced una(oidably in the

same process. They may be of equal importance or of

disproportionate (alues.

!t is not possible or necessary to trace or identify specific loss of

material inputs with product or output.

ADVANTAGE OF USING PROCESS COSTING

*. >ost of each process and that of finished products can bedetermined at short inter(als, wee+ly or daily.

). >ost control and control o(er production are more effecti(ebecause of uniform output and usage of predetermined costsas budgeted or standard costs.

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?. >ost ascertainment is simple and less e9pensi(e.

=. A(erage cost per unit can be easily obtainable.

E. !ndirect e9penses can be apportioned and allocated moreaccurately and reliable data can be obtained.

@. Jaluation of in(entories is easier and accurate.

. Nuotations become easier due to standardized processes.

DISADVANTAGES OF PROCESS COSTING

*. >osts obtained at the end of processes are historical costs andtheir utility for cost control and managerial decision ma+ing isnot significant.

). !nefficiencies in process can be concealed.

?. ;ater processes may be ad(ersely affected due to theinefficiency of earlier processes.

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=. $(aluating the efficiency of indi(idual wor+ers or super(isors isdifficult.

E. Apportionment of 7oint >osts to common products may lead toirrational pricing decisions.

OBJECTIVE OF STUDY

To find out different elements of cost in each process.

To find out per unit of finish goods of each process.

To ma+e a comparati(e analysis of cost per +g of output of

each process for the financial year )001/01 : )00


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)C !n scope where if any amount is false, the effect on this

whole project or project ma+er ha(e to suffer a lot.

?C The main scope o(er here is to obser(ing or e9amines

the 4rocess >osting.

=C Also one of the scope of 4rocess costing research is to

maintain the (arious cost of research li+e raw/material purchase cost

research, production cost research, sales cost, etc.

EC !n the present scenario there is a comple9 business

en(ironment, so the research has a se(eral application which has

de(eloped specific approach with special future.

WHAT IS RESEARCH

'esearch is done to gain some +nowledge so as to it may aid inunderstanding the information gathered on specific topic. !t isscientific and systematic way of understanding information onspecific and particular subjects. !t is a scientific in(estigation tounderstand the case and effect as well as the reasons throughin(estigation. !t is an academic acti(ity and it is to be used intechnical sense.

'esearch is an original contribution to the e9isting stoc+ of +nowledge ma+ing for its de(elopment. !t is the pursuit of truth with

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the help of study, obser(ation comparison and e9periment. !nshort, the search for +nowledge of finding solution to a problem is

research. %uch term refers to the systematic method consisting of sol(ing the problem formulating of hypothesis, collecting the factsor data. Analyzing the facts and reaching certain solution towardsthe certain problems or in certain generalization for sometheoretical formulation.

Today competition and mar+ets both ha(e e9pandedO thecompany now and then can not afford to underta+e researchacti(ity as research in(ol(es huge cost. The company underta+esresearch acti(ities when it percei(es that something is going wrongor there is lac+ of information to sol(e a particular problem.

RESEARCH METHODOLOGY

There are some distinctions made between research techniqueand research methods. 'esearch techniques refers to thebeha(iour and instrument used in performing research operationssuch as ma+ing obser(ation, recording data, techniques of processing data.

'esearch methodology refers to the beha(iour and instrumentused in selecting and constructing research technique.

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All those methods which are used by the researchers during thecourse of studying his2her research problem are termed as

research methodology. 'esearch methodology is a way tosystematically sol(e the researcher problem. !t may be understoodas a science of studying how research is done scientifically.

'esearch methodology has may dimensions and researchmethods do constitute the part of the research methodology. Thusthe research methodology is not only the research methods butalso consider the logic behind the methods used in the conte9t of research study and e9plain by a particular method is used.

RESEARCH DESIGN

The particular structure designed by the researcher for thepurpose of his2her search is +nown as research design-. !t is anarrangement of conditions for collection and analysis of data in amanner that aims to combine rele(ance to the research purposewith economic in procedure.

Thus, the research design is an outline of which the researchwill do from operational implication to the final analysis of data.

SOURCE OF DATA ()

ata has to be collected from the right source so as to ser(ethe purpose of the research. ata are collected as per the

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requirement of the research project. There are two main source of data.

718 PRIMARY DATA ()

The primary source means the data are collected from the firsttime directly from the sample or population as per the requirement.

728 SECONDRY DATA ()

The secondary data are those which ha(e already been collected bysomeone else and which ha(e already past through statisticalprocess li+e information a(ailable from news paper, magazine,

journals, web sites, boo+s, or periodical reports, data ser(ices andcomputer data ban+s.

For my research studies on process costing, ! ha(e usedthe secondary data and ! ha(e a used the following instruments5/

>ost sheet of the company. Geb site5 / www. Adinathindustries.com-

ata related to production.DATA PROCESSING

Any research wor+ machineries out needs proper planning ande9ecution. !t should start with clear/ cut objecti(es, which should bewell, define so the direction of research can be determined.

7299:)299;8DATA

%'."3. 4A'T!>&;A'% i9ingprocess

%praydrying

process

Ballmilling

process

%praydrying

process* 'aw/material

introduced 's. ?0 per unit C

@000 +g ///// ///// /////

) irect labours )EM *EM ?EM )EM

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's. =0000 C? $lectricity charges

's. )E000 C*0M ?0M )EM ?EM

= 3ther raw/material 's.)0 per unit C

///// ///// ///// E=E +g

E ;oss in weight EM M @M M@ "ormal loss ?.?=M ?M =M ?M

%ales price per ton 's. ? E0

Ca 5 at#%n ()

M#&;A'% L8s 's.To 'aw/material @000 *10000 B y ;oss in weight ?00 /To irect labour / *0000 By "ormal loss )00 /To $lectricity / )E00 By 4rocess5/) A2> EE00 *999 1;2?99 Total >999 1;2?99

"ormal output P &nit introducedC loss in weight D normal lossC

P @000/ ?00D)00C

P EE00

"ormal cost per unit for normal output @ T%ta %,t N%r*a %5t/5t P *


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S/ra0 4r0#n+ /r% ,, A=C

4A'T!>&;A'% L8s 's. 4A'T!>&;A'% L8s 's.To 4rocess5/* A2> EE00 *2?9 Total ;?9 22>2?9


P =


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P ==EE

"ormal cost per unit for normal output @ T%ta %,t N%r*a %5t/5t

P ))@)E0 Q ==EE

P 's. E0. 1 per +g

S/ra0 4r0#n+ /r% ,, A=C

4A'T!>&;A'% L8s 's. 4A'T!>&;A'% L8s 's.By 4rocess5/? A2> ==EE ))@)E0 By ;oss in weight ?E0 /To other rawmaterial

E=E *0


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P 's. E .?? per +g

!f unit introduced P "ormal output

@000 +g =E00 +g P =E00 R *00 Q @000 *00+g S

P E +g

299;)2919DATA

%'."3. 4A'T!>&;A'% i9ingprocess

%praydrying

process

Ballmilling

process

%praydrying

process* 'aw/material

introduced 's. ?E per unit C

*0E00 +g ///// ///// /////

) irect labours 's.**0000 C

)EM *EM ?EM )EM

? $lectricity charges 's. @0000 C

*0M ?0M )EM ?EM

= 3ther raw/material 's.)E per unit C

///// ///// /////


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@ "ormal loss ?.?=M ?M =M ?M%ales price per ton 's. =E00

>alculation 5/M#&;A'% L8s 's.To 'aw/material *0E00 ?@ E00 By ;oss in weight E)E /To irect labour / ) E0 By "ormal loss ?E0 /To $lectricity / @000 By 4rocess5/) A2> &;A'% L8s 's. 4A'T!>&;A'% L8s 's.To 4rocess5/* A2>


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P =?EE00 Q 1 0)

P 's. E0.0E per +g

Ba *# #n+ /r% ,, A=C

4A'T!>&;A'% L8s 's. 4A'T!>&;A'% L8s 's.

By 4rocess5/) A2> 1 0) =?EE00 By ;oss in weight E)) /To irect labour / ?1E00 By "ormal loss ?=1 /

To $lectricity / *E000 By 4rocess5/? A2> 1?) =1&;A'% L8s 's. 4A'T!>&;A'% L8s 's.By 4rocess5/? A2> 1?) =1


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A2>To $lectricity / )*000

To pac+aging e9p / =0E0

Total : ?9 ?: ?99 Total : ?9 ?: ?99


P 1 E0/ @*?D)@)C

P 1 E


P E1=E00 Q 1 E

P 's. *.@1 per +g!f unit introduced P "ormal output

*0E00 +g 1 E +g P 1 E R *00 Q *0E00 *00+g S

P E +gDATA ANALYSIS ! INTERPRETATION

The company is production consist of si9 process is as follows5

*C i9ing process

)C %pray drying process

?C Ball milling process

=C %pray drying process

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The cost of con(ersion can be calculated for each process

independently on per unit basis. The unit of measurement is +gs so

from computing the cost per +g of output in each process. The cost

per +g of the final output of the last process can be computed easily.

The o(erall cost per +g of output in each process has gone

down in same processes (ery highly. Ghen the cost per +g of output

of the year )001/0< are compared with )00


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RESEARCH FINDING

The cost per +g of output of process in the * st process i9ing

process- has decline by *0 M in the year )001/0


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!n the A !"AT# Y%T&FF 4JT ;T , wor+ers are uns+illed.!f the training gi(en to the wor+ers than the production

efficiency and product quality as well as low cost of productso profitability increase.

A !"AT# Y%T&FF 4JT ;T is small industries the scopeof e9pansion is (ery large.

>ompanies are not gi(en any ad(ertisement in the domesticmar+et. !f the ad(ertisement gi(en by the company than thedemand of product are increases which is result in to moreproduction of product.

LIMITATION OF STUDY

This report is prepared only for my education purpose.

y industrial training report is completed within )* days.

There may be a possibility of grammatical mista+e.

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The figures, ! ha(e ta+en for analyzing process costing is

appro9imate.

CONCLUSION

This firm is produced dyes without creating air pollution andwater pollution. The manufacturing dyes are not harmful for the healthand en(ironment. %o, its product are really good one for us anden(ironment. !t has a steady growth and profitability is good due tothe cost of the product not increases quic+ly because the control of the managing director is (ery strict.

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! am really (ery than+ful to all professors who guided me in allpossible way. ! am also than+ful to proprietor of the firm for their support in preparation of this project report on process costing.

BIBLIOGRAPHY

B%%3 r & rr 4 ()

Financial management by5 %hri B.%. %hah.

Financial management by5 %hari Lhan : 7ain.

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'esearch methodology by5 4rof. >. Lothari.

Accountancy / = by 5 %udhir 4ra+ashan

Geb sites

o www.adinathindustries.com

o http522www.+arthi+.spar+zspot.com2SpP**)0

o http522 ad(antages/using/process/costing. >om

o http522smallbusiness.chron.com2ad(antages/process/costing/[email protected]

o http522www.brighthub.com2office2finance2articles2 1

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