Process Costing IDiscussion QuestionSparkling Beverages makes one of its products by way of three separate stages. Details ofproduction for the month ending 31st January were as follows:ProcessFermenting Distilling$780,000BottlingInput material:65,000 litres$89,000$153,500$126,0005%55,000 litres 53,000 litres 48,000 litres$18.00/litre $30.00/litreMaterial added$114,600$122,0008%$225,600$193,1005%Direct Labour costManufacturing OverheadNormal losses|OutputScrap value of lossesThe nature of the process requires equipment to be cleaned at the end of each month; hencethere is no opening or closing stock of product in process.Required:i)The process account for each process: andThe abnormal loss/gain account(s) showing Sparkling Beverages true loss/gain.ii)

Name: Process Costing IDiscussion QuestionSparkling Beverages makes one of
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Description: Process Costing IDiscussion QuestionSparkling Beverages makes one of its products by way of three separate stages. Details ofproduction for the month ending 31st January were as follows:ProcessFermenting Distilling$780,000BottlingInput material:65,0

Introduction:- Process costing is an accounting approach for tracking and allocating direct and…

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Accounting

Process Costing I Discussion Question Sparkling Beverages makes one of its products by way of three separate stages. Details of production for the month ending 31st January were as follows: Process Fermenting Distilling $780,000 Bottling Input material: 65,000 litres Material added $89,000 $114,600 $122,000 8% $153,500 $126,000 5% Direct Labour cost Manufacturing Overhead Normal losses Output Scrap value of losses $225,600 $193,100 5% 55,000 litres 53,000 litres 48,000 litres $18.00/litre $30.00/litre 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 Sparkling Beverages true loss/gain.

Process Costing I Discussion Question Sparkling Beverages makes one of its products by way of three separate stages. Details of production for the month ending 31st January were as follows: Process Fermenting Distilling $780,000 Bottling Input material: 65,000 litres Material added $89,000 $114,600 $122,000 8% $153,500 $126,000 5% Direct Labour cost Manufacturing Overhead Normal losses Output Scrap value of losses $225,600 $193,100 5% 55,000 litres 53,000 litres 48,000 litres $18.00/litre $30.00/litre 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 Sparkling Beverages true loss/gain.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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