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 2 Process 3 Process 1 $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 $112,800 $97,080 6% 6% 13,250 kg 12,000 kg $16.00/kg| $32.00/kg 13,750 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: i) The process account for each process: and ii) The abnormal loss/gain account(s) showing J & G Manufacturing true loss/gain.

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PROCESS COSTING I
Discussion Question
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
16,250 kg
$36,750
$92,200
$63,000
Direct Labour cost
$57.300
$61,000
$112,800
$97,080
Manufacturing Overhead
Normal losses
8%
6%
6%
Output
|Scrap value of losses
13,250 kg
12,000 kg
$16.00/kg| $32.00/kg
13,750 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:
i) The process account for each process: and
ii)
The abnormal loss/gain account(s) showing J & G Manufacturing true loss/gain.
Transcribed Image Text:PROCESS COSTING I Discussion Question 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 16,250 kg $36,750 $92,200 $63,000 Direct Labour cost $57.300 $61,000 $112,800 $97,080 Manufacturing Overhead Normal losses 8% 6% 6% Output |Scrap value of losses 13,250 kg 12,000 kg $16.00/kg| $32.00/kg 13,750 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: i) The process account for each process: and ii) The abnormal loss/gain account(s) showing J & G Manufacturing true loss/gain.
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