J & G Distilleries makes one of its products by way of three separate stages. Details of production for the month ending 31st January were as follows: Process Fermenting Distilling $780,000 Bottling |Input material: Material added 65,000 litres $89,000 Direct Labour cost $114,600 $122,000 $153,500 $126,000 $225,600 $193,100 5% Manufacturing Overhead Normal losses 8% 5% Output Scrap value of losses 55,000 litres 53,000 litres 48,000 litres $18.00/litre $30.00/litre The nature of the process requires equipment to be cleaned at the end of each month; hence there is no opening or closing stock of product in process.
J & G Distilleries makes one of its products by way of three separate stages. Details of production for the month ending 31st January were as follows: Process Fermenting Distilling $780,000 Bottling |Input material: Material added 65,000 litres $89,000 Direct Labour cost $114,600 $122,000 $153,500 $126,000 $225,600 $193,100 5% Manufacturing Overhead Normal losses 8% 5% Output Scrap value of losses 55,000 litres 53,000 litres 48,000 litres $18.00/litre $30.00/litre The nature of the process requires equipment to be cleaned at the end of each month; hence there is no opening or closing stock of product in process.
Chapter1: Financial Statements And Business Decisions
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J & G Distilleries makes one of its products by way of three separate stages. Details of
production for the month ending 31st January were as follows:
Process
Fermenting Distilling
$780,000
Bottling
Input material:
Material added
65,000 litres
$89,000
Direct Labour cost
$114,600
$122,000
$153,500
$126,000
$225,600
Manufacturing Overhead
Normal losses
$193,100
8%
5%
5%
Output
Scrap value of losses
55,000 litres 53,000 litres 48,000 litres
$18.00/litre $30.00/litre
The nature of the process requires equipment to be cleaned at the end of each month; hence
there is no opening or closing stock of product in process.
Required:
i)
ii)
The process account for each process: and
The abnormal loss/gain account(s) showing J & G's true loss/gain.
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