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B. Kama Limited operates a processing costing system. All direct materials are adde beginning of the process and conversion costs are added evenly during the proce Management Accountant of Kama Ltd, has provided you with the following summa for December. • Material added were 10 000 units costing K1 360 000

B. Kama Limited operates a processing costing system. All direct materials are adde beginning of the process and conversion costs are added evenly during the proce Management Accountant of Kama Ltd, has provided you with the following summa for December. • Material added were 10 000 units costing K1 360 000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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B. Kama Limited operates a processing costing system. All direct materials are added at the beginning of the process and conversion costs are added evenly during the process. The Management Accountant of Kama Ltd, has provided you with the following summary data for December. • Material added were 10 000 units costing K1 360 000 • Labour cost as K1 284 000 • Overheads was K1 172 000 • 9 000 units were completed during thee month • It is company policy to allow 8% loss on inputs Scrap value of the normal loss is K55 per unit • There is no opening or closing inventory of work-in-progress recorded. Required (a) Prepare for he month of December i. Process account ii. Normal loss (scrap) account iii. Abnormal loss/Abnormal gain account
Transcribed Image Text:B. Kama Limited operates a processing costing system. All direct materials are added at the beginning of the process and conversion costs are added evenly during the process. The Management Accountant of Kama Ltd, has provided you with the following summary data for December. • Material added were 10 000 units costing K1 360 000 • Labour cost as K1 284 000 • Overheads was K1 172 000 • 9 000 units were completed during thee month • It is company policy to allow 8% loss on inputs Scrap value of the normal loss is K55 per unit • There is no opening or closing inventory of work-in-progress recorded. Required (a) Prepare for he month of December i. Process account ii. Normal loss (scrap) account iii. Abnormal loss/Abnormal gain account
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Process costing account refers to the account which evaluates all the direct and indirect expenses involved in processing certain units of goods or services by a company in a desired period of time.

 

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