Hafidz Bhd produces jewellery on various scales. One the jewellery that it produces is called Red Ruby. The production of Red Ruby consists of two processes. The following information was provided on its production for March 2021. 1. Process 1 Process 2 320 hours 10% input 140 kg Direct Labour 350 hours 8% of input 120 kg Normal loss Output (a) Direct materials for each process are as follows: Silver 50 kg @ RM35/kg 100 kg @ RM12/kg Process 1 Steel Process 2 Red ruby 30 kg @ RM85/kg Additional RM800 (b) Labours for process 1 and process 2 were paid RM6 and RM8 per hours respectively. Overhead incurred is RM16,750 and was absorbed in both processes based on direct labour hours. (c) The scraps from process 1 can be sold at RM5 per kg and scraps from process 2 has no value. (d) Direct expenses of RM2,000 was incurred in process 1.
Hafidz Bhd produces jewellery on various scales. One the jewellery that it produces is called Red Ruby. The production of Red Ruby consists of two processes. The following information was provided on its production for March 2021. 1. Process 1 Process 2 320 hours 10% input 140 kg Direct Labour 350 hours 8% of input 120 kg Normal loss Output (a) Direct materials for each process are as follows: Silver 50 kg @ RM35/kg 100 kg @ RM12/kg Process 1 Steel Process 2 Red ruby 30 kg @ RM85/kg Additional RM800 (b) Labours for process 1 and process 2 were paid RM6 and RM8 per hours respectively. Overhead incurred is RM16,750 and was absorbed in both processes based on direct labour hours. (c) The scraps from process 1 can be sold at RM5 per kg and scraps from process 2 has no value. (d) Direct expenses of RM2,000 was incurred in process 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process 1 and Process 2 accounts.
Transcribed Image Text:1.
Hafidz Bhd produces jewellery on various scales. One the jewellery that
it produces is called Red Ruby. The production of Red Ruby consists of
two processes. The following information was provided on its production
for March 2021.
Process 1
350 hours
Direct Labour
Normal loss
Output
8% of input
120 kg
Process 2
320 hours
10% input
140 kg
(a)
Direct materials for each process are as follows:
Process 1
Silver
50 kg @ RM35/kg
100 kg @ RM12/kg
Steel
Process 2
Red ruby 30 kg @ RM85/kg
Additional RM800
(b)
Labours for process 1 and process 2 were paid RM6 and RM8 per
hours respectively. Overhead incurred is RM16,750 and was
absorbed in both processes based on direct labour hours.
(c) The scraps from process 1 can be sold at RM5 per kg and scraps
from process 2 has no value.
(d)
Direct expenses of RM2,000 was incurred in process 1.
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