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: Material added Direct Labour cost Manufacturing Overhead Normal losses Output |Scrap value of losses 16,250 kg $57,300 $61,000 8% $36,750 $92,200 $63,000 6% $112,800 $97,080 6% 13,750 kg 13,250 kg 12,000 kg $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. i) The process account for each process: and ii) The abnormal loss/gain account(s) showing J & G Manufacturing true loss/gain.
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: Material added Direct Labour cost Manufacturing Overhead Normal losses Output |Scrap value of losses 16,250 kg $57,300 $61,000 8% $36,750 $92,200 $63,000 6% $112,800 $97,080 6% 13,750 kg 13,250 kg 12,000 kg $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. i) The process account for each process: and ii) The abnormal loss/gain account(s) showing J & G Manufacturing true loss/gain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please assit with questions (i) and (ii)
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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
Direct Labour cost
$57,300
$61,000
$112,800
$92,200
$63,000
Manufacturing Overhead
Normal losses
Output
Scrap value of losses
$97,080
6%
8%
6%
13,750 kg
13,250 kg
12,000 kg
$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.
ii)
i) The process account for each process: and
The abnormal loss/gain account(s) showing J & G Manufacturing true loss/gain.
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