1. Yellow Co has two processes, Y and Z. There is an expected loss of 5% of inputin process Y and 7% of input in process Z. Activity during a four week period is asfollows.YMaterial input (kg)20,000Output (kg)18,50026,100Is there an abnormal gain or abnormal loss for each process?Z28,0002. 3,000 units of material are input to a process. Process costs are as follows.Material$11,700Conversion costs$6,300Output is 2,000 units. Normal loss is 20% of input.Required Prepare a process account and the appropriate abnormal loss/gain account.

Process costing means when raw material is added in one process and different process are applied to…

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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

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.

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