Product Simba is made by processing materials in three sequential processes, 1, 2 and 3. The details of the process cost for the financial period 2 were as follows: Process 1 Process 2 Process 3 K K K Direct Material introduced (5000kg) 40 000 Direct Materials added 12 000 25 280 46 400 Direct Labour 10 000 12 000 20 000 Direct Expenses 8 000 12 400 8 160 Budgeted departmental overheads for period 2 were K168,000 cost of each process on a percentage of Direct Labour Cost. Output and normal loss data are as follows: Process 1 Process 2 Process 3 K K Actual Output 4 400kg 4 200kg 3 500kg of product Simba Normal loss 10% 5% 10% Normal loss is a partially toxic material and is sold at K2, K6 and K10 in processes 1, 2 and 3 respectively. There was no finished inventory at the beginning of the period and no work-in process at either the beginning or end of the period. Required; Find, all the process accounts and the losses account.
Product Simba is made by processing materials in three sequential processes, 1, 2 and 3. The details of the process cost for the financial period 2 were as follows: Process 1 Process 2 Process 3 K K K Direct Material introduced (5000kg) 40 000 Direct Materials added 12 000 25 280 46 400 Direct Labour 10 000 12 000 20 000 Direct Expenses 8 000 12 400 8 160 Budgeted departmental overheads for period 2 were K168,000 cost of each process on a percentage of Direct Labour Cost. Output and normal loss data are as follows: Process 1 Process 2 Process 3 K K Actual Output 4 400kg 4 200kg 3 500kg of product Simba Normal loss 10% 5% 10% Normal loss is a partially toxic material and is sold at K2, K6 and K10 in processes 1, 2 and 3 respectively. There was no finished inventory at the beginning of the period and no work-in process at either the beginning or end of the period. Required; Find, all the process accounts and the losses account.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Product Simba is made by processing materials in three sequential processes, 1, 2 and 3. The
details of the process cost for the financial period 2 were as follows:
Process 1
Process 2
Process 3
K
K
K
Direct Material introduced (5000kg)
40 000
Direct Materials added
12 000
25 280
46 400
Direct Labour
10 000
12 000
20 000
Direct Expenses
8 000
12 400
8 160
Budgeted departmental overheads for period 2 were K168,000 cost of each process on a
percentage of Direct Labour Cost.
Output and normal loss data are as follows:
Process 1
Process 2
Process 3
K
K
Actual Output
4 400kg
4 200kg
3 500kg of
product Simba
Normal loss
10%
5%
10%
Normal loss is a partially toxic material and is sold at K2, K6 and K10 in processes 1, 2 and
3 respectively.
There was no finished inventory at the beginning of the period and no work-in process at
either the beginning or end of the period.
Required; Find, all the process accounts and the losses account.
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