During January 2021, 2000 units were introduced into Process 1. The normal loss was estimated at 5% on ilnput. At the end of the month 1500 units had been produced and transferred to the next process. 250 units were uncompleted and 250 units had been scrapped. It was estimated that uncompleted units had reached a stage of production as follows: Material - 75% completed Labor = 60% completed Overhead - 60% completed. You are required to prepare a Statement of Equivalent Production and 1. Find the value of equivalent production in terms of materials? 2. What is the value of equivalent production in terms of labor and overheads?
During January 2021, 2000 units were introduced into Process 1. The normal loss was estimated at 5% on ilnput. At the end of the month 1500 units had been produced and transferred to the next process. 250 units were uncompleted and 250 units had been scrapped. It was estimated that uncompleted units had reached a stage of production as follows: Material - 75% completed Labor = 60% completed Overhead - 60% completed. You are required to prepare a Statement of Equivalent Production and 1. Find the value of equivalent production in terms of materials? 2. What is the value of equivalent production in terms of labor and overheads?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:During January 2021, 2000 units were introduced
into Process 1. The normal loss was estimated at 5%
on ilnput. At the end of the month 1500 units had
been produced and transferred to the next process.
250 units were uncompleted and 250 units had been
scrapped. It was estimated that uncompleted units
had reached a stage of production as follows:
Material - 75% completed Labor = 60% completed
Overhead - 60% completed. You are required to
prepare a Statement of Equivalent Production and
1. Find the value of equivalent production in terms of
materials?
2. What is the value of equivalent production in
terms of labor and overheads?
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