Jerry Ltd. Processes a patent material used in building the material is produced in three consecutiveprocesses.ParticularsProcess I ($) Process II ($)Process III ($)Cost of 1000 tons of material used200,00087,500Manufacturing wages and expensesWeight lost (% of the input of the process)Scrap (Sales price $50 per ton)39,50010%10,71020%5%50 tons30 tons51 tonsSale price per ton350500800Management expenses were $12,500 and selling expenses $9,500 2/3 of the output of process !and one-half of the output of process Il are passed on to the next process and the balance are sold.The entire output of process III is sold.Prepare the three process accounts and a statement of profit.

Process I Account Particulars Units tons Amount ($) Particulars Units tons Amount ($) Raw…

Jerry Ltd. Processes a patent material used in building the material is produced in three consecutive processes. Particulars Process I ($) Process II ($) Process III ($) Cost of 1000 tons of material used 200,000 - 87,500 39,500 10,710 Manufacturing wages and expenses Weight lost (% of the input of the process) Scrap (Sales price $50 per ton) 5% 10% 20% 50 tons 30 tons 51 tons Sale price per ton 350 500 800 Management expenses were $12,500 and selling expenses $9,500 2/3 of the output of process I and one-half of the output of process Il are passed on to the next process and the balance are sold. The entire output of process III is sold. Prepare the three process accounts and a statement of profit.

Jerry Ltd. Processes a patent material used in building the material is produced in three consecutive processes. Particulars Process I ($) Process II ($) Process III ($) Cost of 1000 tons of material used 200,000 - 87,500 39,500 10,710 Manufacturing wages and expenses Weight lost (% of the input of the process) Scrap (Sales price $50 per ton) 5% 10% 20% 50 tons 30 tons 51 tons Sale price per ton 350 500 800 Management expenses were $12,500 and selling expenses $9,500 2/3 of the output of process I and one-half of the output of process Il are passed on to the next process and the balance are sold. The entire output of process III is sold. Prepare the three process accounts and a statement of profit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products Scrap processing (disposal) Rework Preventive maintenance Product design Warranty work Finished goods inspection Activity Cost $50,000 28,000 19,000 25,000 8,000 30,000 46,000 12,000 23,000 From the provided schedule of activity costs, determine the value-added costs. A.$177,000 B.$191,000 C.$156,000 D.$104,000
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(B) The following information is provided for the production of two product lines named as pen and pencil of a Deep corporation. Activity Cost (OMR) Setup 250,000 Machine maintenance 75,000 Total indirect manufacturing costs 325,000 Product- pen Product- pencil Total( OMR) Direct labor hours 7000 3000 10,000 Number of setups 70 30 100 Number of machine hours 1,200 3,800 5,000 The Deep Corporation plans to produce 500 units of pens and 1000 units of pencils. Compute the activity based cost per unit of each product.
The Baker Company manufactures a product in a single process. The following information isavailable:Input material 5,000 kilos valued at $18,000Material added $4,000Direct labour cost incurred $14,000Manufacturing overhead incurred $20,500Normal losses 10% of inputScrap value of losses $5.00 per unitUnits completed and transferred out 4,300 unitsi) Calculate the cost per completed unitii) What is the value of the units completed and transferred to finished goods?iii) What is the value of the unexpected losses?iv) What is the manufacturer’s true loss?v) Prepare the journal entries necessary to record the assignment of direct materials anddirect labour and the allocation of manufacturing overhead to the process. Also, give thejournal entries for the transfer of units completed to Finished Goods Inventory.
Johnson Johnson produces a single product called Swizzle which requires two processes. Normal loss in each process is 10%. Scrap units are sold for $4 each. The following information is available for the processes: Process 1 Process 2 Direct materials (4000 units) $32 400 Added direct materials $6480 Direct Labour $18 640 $20 000 Production Overheads $24 000 $33 000…
Journalize the following transactions: Purchased direct materials on account, $20,000 Recognized depreciation on production plant & equipment, $4,000 Direct materials used in production, $16,000 Recognized expired plant insurance, $6,000 Direct labor used: $30,000; and indirect labor used: $10,000 Allocated overhead at the rate of 60% of direct labor cost Cost of units completed, $50,000 Sales on account, $90,000 Cost of units sold, $65,000
2. XYZ Co. manufactures a high-quality product which goes through two departments; mixing department and finishing department. Beg WIP Inv.: 8,000 units Raw Material $45,600 $49,300 $43,720 $81,200 D/L incurred in current period $206,700 $186,680 30,000 Direct Labor Manuf. Overh. D/M used in current period M/O applied Units completed and T/O End. WIP Inv.: 10,000, D/M 100%, Conv. 20%. a) Prepare the production report b) Prepare the journal entries for -release of D/M, -incurrance of D/L, -application of M/O, and - transferring units completed to mixing dept.
Determine the missing amount for each letter. Total ifacturing Costs 431600 (a) 567,000 333,900 363,800 Tauthook and Media Work in Process Jan. 1 $40,200 541800 (d) 75,600 EA $ Work in Process Dec. 31 (b) 50,400 100,800 Cost of Goods Manufactured $453,600 592,200 176400 (f) 56,700 283500 (h) 340,200
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Question No. 4 HASF Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the end of the joint process. Additional information for HASF are as follows: B Total Units produced 24,000 Joint costs 240,000 Sales value before additional processing 400,000 Additional costs for further processing 12,000 Sales value if processed further 470,000 12,000 8,000 4,000 144,000 60,000 36,000 240,000 100,000 60,000 28,000 20,000 60,000 280,000 120,000 70,000 Required: a. Which, if any, of products A, B, and C should be processed further and then sold? b. Keeping in view the answer of "part a", write down your critical feedback to support your answer (Word limit Max 200)