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

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Decision to Sell before or after additional processing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education