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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A product is manufactured by passing materials through two processes. Production costs for
2021 January are as follows:
Process A
Process B
Direct materials
Direct labour
4 000 kg @ $3.00 per kg
$2 000
1 500 kg @ $2.50 per kg
$1.500
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%
Process B
5%
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
A.
Prepare Process A and Process B accounts.
B.
Prepare abnormal loss/gain accounts.
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