J & G Manufacturing makes a single product by way of three separate processes. Details of production for the month ending June 30 were as follows: Process   Process 1 Process 2 Process 3 Input material:  16,250 kg $390,000 - - Material added - $36,750 - Direct Labor cost $57,300 $92,200 $112,800 Manufacturing Overhead $61,000 $63,000 $97,080 Normal losses 8% 6% 6% Output 13,750 kg 13,250 kg 12,000 kg Scrap value of losses - $16.00/kg $32.00/kg 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: The process account for each process:  The abnormal loss/gain account(s) showing J & G Manufacturing true loss/gain.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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J & G Manufacturing makes a single product by way of three separate processes. Details of production for the month ending June 30 were as follows:

Process

 

Process 1

Process 2

Process 3

Input material:  16,250 kg

$390,000

-

-

Material added

-

$36,750

-

Direct Labor cost

$57,300

$92,200

$112,800

Manufacturing Overhead

$61,000

$63,000

$97,080

Normal losses

8%

6%

6%

Output

13,750 kg

13,250 kg

12,000 kg

Scrap value of losses

-

$16.00/kg

$32.00/kg

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:

  1. The process account for each process: 
  2. The abnormal loss/gain account(s) showing J & G Manufacturing true loss/gain.
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