Preparation of Process Accounts(With process losses and no WIP)Practice Problem 7A food product passes through two processes. The output of Process I becomes theinput of Process II. The quantity of raw material introduced into Process I is 2000 kgs at1RO per kg. The cost and output data for the month under review are as under:Process I(RO)600ParticularsProcess II(RO)400Direct MaterialDirect LaborProduction overheads400300390403Normal Loss8%5%OutputLoss Realization RO/unitThe company's policy is to fix the selling price of the end product in such a way as toyield a profit 20% on selling price.1800 Kgs.1740 Kgs.0.2000.300Required:(i) Prepare the Process Accounts(ii) Determine the selling price per unit of the end product.

Calculation Net cost (1390-32) 1358 Divided by: Kgs output (2000-160) 1840 Cost per unit for…

Preparation of Process Accounts (With process losses and no WIP) Practice Problem 7 A food product passes through two processes. The output of Process I becomes the input of Process II. The quantity of raw material introduced into Process I is 2000 kgs at 1RO per kg. The cost and output data for the month under review are as under: Particulars Process I(RO) 600 Process II(RO) Direct Material 400 Direct Labor 400 з00 Production overheads 390 403 Normal Loss 8% 5% Output Loss Realization RO/unit The company's policy is to fix the selling price of the end product in such a way as to yield a profit 20% on selling price. 1800 Kgs. 1740 Kgs. 0.200 0.300 Required: (i) Prepare the Process Accounts (ii) Determine the selling price per unit of the end product.

Preparation of Process Accounts (With process losses and no WIP) Practice Problem 7 A food product passes through two processes. The output of Process I becomes the input of Process II. The quantity of raw material introduced into Process I is 2000 kgs at 1RO per kg. The cost and output data for the month under review are as under: Particulars Process I(RO) 600 Process II(RO) Direct Material 400 Direct Labor 400 з00 Production overheads 390 403 Normal Loss 8% 5% Output Loss Realization RO/unit The company's policy is to fix the selling price of the end product in such a way as to yield a profit 20% on selling price. 1800 Kgs. 1740 Kgs. 0.200 0.300 Required: (i) Prepare the Process Accounts (ii) Determine the selling price per unit of the end product.

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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