After discussing the treatment of process losses and abnormal effectiveness in process accounts theoretically, you are required to prepare Process accounts, Normal loss accounts, Abnormal loss accounts and Abnormal effective (gain) account from the following data obtained in respect of product A which passes through two distinct processes namely process X and process Y: 6.
After discussing the treatment of process losses and abnormal effectiveness in process accounts theoretically, you are required to prepare Process accounts, Normal loss accounts, Abnormal loss accounts and Abnormal effective (gain) account from the following data obtained in respect of product A which passes through two distinct processes namely process X and process Y: 6.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter1: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 6E
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Question
![After discussing the treatment of process losses and abnormal effectiveness in process
accounts theoretically, you are required to prepare Process accounts, Normal loss
accounts, Abnormal loss accounts and Abnormal effective (gain) account from the
following data obtained in respect of product A which passes through two distinct
processes namely process X and process Y:
Particulars
Input (Rs.) (8,000 units)
Material Cost (Rs.)
Labor Cost (Rs.)
Electric Power (Rs.)
Process-X
Process-Y
8,96,000
1.46,500
1,18,800
44,300
1,04,580
79,200
47,220
Normal loss
5%
4%
Value of scrap per unit (Rs.)
Output (units)
50
62
7,500
7,240
Other manufacturing expenses are Rs.1,98,000 to be charged on the basis of labor cost.
6.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F817e0521-e65a-488a-a12f-c7c5f44fa976%2Fa832c21c-69f6-468a-a893-52645d5b5785%2F1nbjkga_processed.jpeg&w=3840&q=75)
Transcribed Image Text:After discussing the treatment of process losses and abnormal effectiveness in process
accounts theoretically, you are required to prepare Process accounts, Normal loss
accounts, Abnormal loss accounts and Abnormal effective (gain) account from the
following data obtained in respect of product A which passes through two distinct
processes namely process X and process Y:
Particulars
Input (Rs.) (8,000 units)
Material Cost (Rs.)
Labor Cost (Rs.)
Electric Power (Rs.)
Process-X
Process-Y
8,96,000
1.46,500
1,18,800
44,300
1,04,580
79,200
47,220
Normal loss
5%
4%
Value of scrap per unit (Rs.)
Output (units)
50
62
7,500
7,240
Other manufacturing expenses are Rs.1,98,000 to be charged on the basis of labor cost.
6.
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