A product is manufactured by passing materials through two processes. Production costs for 2021 January are as follows: Process A Process B Direct materials 4 000 kg @ $3.00 per kg $2 000 1 500 kg @ $2.50 per kg $1.500 Direct labour Overheads 100% of direct labour cost 125% of direct labour cost There is no beginning or ending work in progress inventory. Normal losses: Process A 10% 5% Process B Scrapped values: Process A $1.75 per kg Process B $2.50 per kg Output for 2021 January was: Process A 3.500 kg Process B 5 050 kg Prepare Process A and Process B accounts.

A product is manufactured by passing materials through two processes. Production costs for 2021 January are as follows: Process A Process B Direct materials 4 000 kg @ $3.00 per kg $2 000 1 500 kg @ $2.50 per kg $1.500 Direct labour Overheads 100% of direct labour cost 125% of direct labour cost There is no beginning or ending work in progress inventory. Normal losses: Process A 10% 5% Process B Scrapped values: Process A $1.75 per kg Process B $2.50 per kg Output for 2021 January was: Process A 3.500 kg Process B 5 050 kg Prepare Process A and Process B accounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Rosewell Ltd produces Netbell, a product requiring two processes. Normal loss in each process is 10%. The following information relates to Period 2: Direct materials (4,000 units) Added direct materials (1,200 units) Direct labour Production overheads Output transferred to Process 2 Output transferred to finished goods Scrapped units are sold for $4 each Process 1 S 32 400 18 640 24 000 3 800 units Process 2 S 6 480 20 000 33 000 4 250 units
4,000 units are introduced in a process. Normal loss is 5%. During the process 3,400 units are completed and transferred to next process. 200 units are lost due to an accident (100% complete) and 400 units are not completed yet. If the degree of completion of incomplete units is material 80% and Labour 50%, completed units for material and labour will be: O a. Material 3,920 units and labour 3,800 units O b. Material 3,800 units and labour 3,725 units O C. Material 3,800 units and labour 3,900 units Od. Material 3,680 units and labour 3,800 units
Required: How much is the cost of goods manufactured in department B?
Total direct materials cost incurred in the current period is $90,000. Units completed during the current period plus equivalent units in ending work in process inventory are 18,000. The direct materials cost per equivalent unit for the current period is $4.5 True False
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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.
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Costs incurred are summarized as follows: WIP - Polishing Process A/C January 1 Bal. $ 0 Transfer from Moulding 20,000 1,310,000 Direct Materials Added 391,600 Direct Labour 638,000 Manufacturing Overhead 307,400 Normal losses are estimated to be 2½% of input during the period. Inspection takes place during the processing operation, at which point damaged products are separated from good products and sold at $85 each. At inspection, 2,000 products were rejected as scrap. These units had reached the following degree of completion: Transfer from Moulding 100% Direct material added 40% Conversion costs 20% Work-in-progress at the end of January was 4,000 handles and had reached the following degree of completion: Transfer from Moulding 100%…