Question 2.Textile Ltd. produces a single product which undergoes three processes. The following detailsrelate to one period:Raw Materials (60,000 Units)Materials IntroducedDirect WagesOverheads Allocated to ProcessesOther Overheads Total $27,000Output in Units15Process80,00023,500 18,750A normal loss of 5% of the input to each process is anticipated.Units lost have the following scrap values:After Process IAfter Process IIAfter Process IIIThere was no opening or closing W-I-P.Prepare the process accounts for the period.Nil5115,600 12,0003,800 4,60010,2737,902Units Units55,200 53,800$1.80$22,10013,4003,2008,825Units49,600ske)

Cost of units transferred to next process is calculated by adding the cost of previous process and…

Answered: Question 2. Textile Ltd. produces a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Jamaica Company manufactures a product in a single process, The following information is available: Input Material Material Added Direct Labour Cost Incurred Manufacturing Overhead Incurred Normal Losses Scrap value of losses Completed and transferred to Finished Goods 2,500 kilos valued at $14.40 per kilo $8,000 $38,500 $30,500 10% of input $20.00 per kilo 2,150 kilos Given that 20 of the unexpected losses was because of pilferage, What is the amount to be charged to the costing profit and loss account for the period? Select one: OA. $4,800 O B. $2,000 O C. $3,200 OD. $2,800 Clear my choice B
The Jamaica Company manufactures a product in a single process, The following information is available: Input Material Material Added Direct Labour Cost Incurred Manufacturing Overhead Incurred Normal Losses Scrap value of losses Completed and transferred to Finished Goods Time left 1:02:56 2,500 kilos valued at $14.40 per kilo $8,000 $38,500 $30,500 10% of input $20.00 per kilo 2,150 kilos Given that 20 of the unexpected losses was because of pilferage, What is the amount to be charged to the costing profit and loss account for the period? Select one: ○ A. $2,000 ○ B. $4,800 ○ C. $3,200 ○ D. $2,800
R makes one product, which passess through a single process. Details of the process account for period 1 were as follows: Material cost - 20,000 kg P26,000 Labour cost - P12,000 Production overhead cost P5,700 Output 18,000 kg Normal Losses 5% of input There was no work in progess at the beginning or end of the period. Process losses have no value. The cost of the abnormal loss (to the nearest P) is?
R makes one product, which passes through a single process. Details of the process account for period 1 were as follows: Material cost – 20,000 kg P26,000 Labour cost P12,000 Production overhead cost P5,700 Output 18,800 kg Normal losses 5% of input There was no work-in-progress at the beginning or end of the period. Process losses have no value. The cost of the abnormal loss (to the nearest P) is
1. Yellow Co has two processes, Y and Z. There is an expected loss of 5% of input in process Y and 7% of input in process Z. Activity during a four week period is as follows. Y Material input (kg) 20,000 Output (kg) 18,500 26,100 Is there an abnormal gain or abnormal loss for each process? Z 28,000 2. 3,000 units of material are input to a process. Process costs are as follows. Material $11,700 Conversion costs $6,300 Output is 2,000 units. Normal loss is 20% of input. Required Prepare a process account and the appropriate abnormal loss/gain account.
Basic. R makes one product, which passes through a single process. Details of the process account for period 1 were as follows: $ Material cost – 20 000kg 26 000 Labour cost 12 000 Production overhead cost 5 700 Output 18 800kg Normal losses 5% of input There was no work in progress at the beginning or end of the period. Process losses have no value. The cost of the abnormal loss (to the nearest $) is: (a) $437 (b) $441 (c) $460 (d) $465 CIMA Fundamentals of Management
a. The following data relates to Process 1 Material Input 1,000 units costing Ghc02,000 Lakour costs Ghc10,000 Departmental Overheads Ghc8,000 Normal loss is 4% of input and is sold as scrap for Ghc15 per unit Actual output = 940 units Required: Calculate the average cost per unit in process 1 and produce the process account, abnormal gain and loss account and the scrap account b. Using a practical example, indicate how to determine sales volume variance
The product of Bhawan LLC passes through two distinct processes to completion. From the past experience the production manager ascertained that loss incurred for Process 1 and Process 2 is 5% and 4% respectively. The loss of each process possesses a scrap value. The loss of Process 1 and Process 2 are sold at RO 10 per 50 units. Process 1 Process 2 Material Consumed RO 20,000 RO 70,000 Direct Labor RO 1,000 RO 1,500 Manufacturing Expenses RO 2,000 RO 1,250 Indirect expenses amounting to RO 10,000 may be apportioned on the basis of output of each process. 15,000 units have been issued to Process 1 at a cost of RO 15,000. The output of Process 1 is 14,000 and Process 2 is 13,600. Production manager requested you to prepare process accounts, normal loss account and abnormal accounts.
Latexim company manufactured clothes. Latexim uses a process costing system. Thefollowing information on Assembly Process is extracted from Latexim’s record;Input materials 3,200 kilogram (kg) RM18 per kgLabour and overhead incurred RM12,000Expected normal loss 7% of inputAssuming that the losses can be sold as scrap for RM1.50 per kg. You are requiredcompute:i) Scrap value of normal loss in RM.ii) Expected output in kg. iii) Calculate cost per kg
The Baker Company manufactures a product in a single process. The following information isavailable:Input material 5,000 kilos valued at $18,000Material added $4,000Direct labour cost incurred $14,000Manufacturing overhead incurred $20,500Normal losses 10% of inputScrap value of losses $5.00 per unitUnits completed and transferred out 4,300 unitsi) Calculate the cost per completed unitii) What is the value of the units completed and transferred to finished goods?iii) What is the value of the unexpected losses?iv) What is the manufacturer’s true loss?v) Prepare the journal entries necessary to record the assignment of direct materials anddirect labour and the allocation of manufacturing overhead to the process. Also, give thejournal entries for the transfer of units completed to Finished Goods Inventory.
The Baker Company manufactures a product in a single process. The following information is available: Input material Material added 5,000 kilos valued at s18,000 $4,000 $14,000 $20,500 10% of input 5.00 per unit Direct labour cost incurred Manufacturing overhead incurred Normal losses Scrap value of losses Units completed and transferred out 4.300 units iv) Vwhat is the manufacturer's true loss?
X Company manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 500 units and 1,000 units. Assume that $250 of the factory maintenance cost was fixed cost. Cost 500 units 1.000 units |Depreciation: plant equipment Direct labor 5,000 5.000 13.000 25.000 26,000 Direct material Factory maintenance Indirect labor 50.000 3,250 6.250 7,500 15,000 12,000 Plant manager salaries Property taxes on plant 12,000 3,900 3,900 Based on the above, when the company produces 500 units, total variable costs will be calculated as follows: * 13,000 + 25,000 + 3,250 + 7,500 13,000 + 25,000 + 7,500 13,000 + 25,000 + 3,000 + 7,500 O None of the above

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS