## When Units are Transferred to Next Process AND Also Sold
In some processes, part of the output is transferred to the next process and part is sold directly as an intermediate product (e.g., raw sugar sold while refined sugar is processed further).
### Step-by-Step Approach
Step 1: Prepare the process account normally.
- Units transferred to the next process are solved as usual (at Normal Cost per Unit).
- Units sold are transferred to Cost of Sales A/c (also at Normal Cost per Unit from the process).
Step 2: All goods are eventually accounted in Profit & Loss A/c.
- If any selling or distribution overhead cannot be allocated or apportioned to a specific process, write it directly in the P/L A/c (do not force it into any process account).
### Why Both Treatments?
The Process A/c only captures manufacturing cost. Once units leave the process for sale, profit is realised — the difference between selling price and the process cost is recognised in P/L.
### Typical Flow
1. Process A/c → Output split: (a) transferred to next process; (b) transferred to Cost of Sales.
2. Cost of Sales A/c → P/L A/c with Sales Revenue.
3. Unallocable selling/distribution overheads → directly to P/L.