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 $390,000 Input material: 16,250 kg Material added $36,750 Direct Labour cost $57,300 $61,000 $92,200 $112,800 Manufacturing Overhead Normal losses $63,000 $97,080 8% 6% 6% 13,250 kg 12,000 kg $16.00/kg| $32.00/kg Output 13,750 kg Scrap value of losses 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 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 $390,000 Input material: 16,250 kg Material added $36,750 Direct Labour cost $57,300 $61,000 $92,200 $112,800 Manufacturing Overhead Normal losses $63,000 $97,080 8% 6% 6% 13,250 kg 12,000 kg $16.00/kg| $32.00/kg Output 13,750 kg Scrap value of losses 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
Section: Chapter Questions
Problem 1Q
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Question
Required:
i)The process account for each process: and
ii)The abnormal loss/gain account(s)showing J & G Manufacturingtrue loss/gain.
Transcribed Image Text: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
$92,200
$63,000
$112,800
$97,080
Direct Labour cost
$57,300
$61,000
Manufacturing Overhead
Normal losses
8%
6%
6%
Output
13,250 kg
12,000 kg
$16.00/kg $32.00/kg
13,750 kg
Scrap value of losses
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.
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