Question 28: A Company produces a component, which passes through two processes. During the mon of April, 2013, materials for 40,000components were put into Process I of which 30,000 were completed and transferred to Process II. Those not transferred to Process Il were 100% complete as to materials cost and 50% complete as to labour and overheads cost. The Process I cost incurred were as follows: Direct Materials 15,000 Direct Wages Factory Overheads *18,000 12,000 Of those transferred to Process II, 28,000 units were completed and transferred to finished goods stores. There was a normal loss with no salvage value of 200 units in Process II. There were 1,800 units, remained unfinished in the process with 100% complete as to materials and 25% complete as regard to wages and overheads. No further process material costs occur after introduction at the first process until the end of the second process, when protective packing is applied to the completed components. The process and packing cost incurred at the end of the Process II were: Packing Materials Direct Wages Factory Overheads 4,000 3,500 4,500 Required: (1) Prepare Statement of Equivalent Production, Cost per unit and Process I A/c. Prepare Statement of Equivalent Production, Cost per unit and Process II A/c.
Question 28: A Company produces a component, which passes through two processes. During the mon of April, 2013, materials for 40,000components were put into Process I of which 30,000 were completed and transferred to Process II. Those not transferred to Process Il were 100% complete as to materials cost and 50% complete as to labour and overheads cost. The Process I cost incurred were as follows: Direct Materials 15,000 Direct Wages Factory Overheads *18,000 12,000 Of those transferred to Process II, 28,000 units were completed and transferred to finished goods stores. There was a normal loss with no salvage value of 200 units in Process II. There were 1,800 units, remained unfinished in the process with 100% complete as to materials and 25% complete as regard to wages and overheads. No further process material costs occur after introduction at the first process until the end of the second process, when protective packing is applied to the completed components. The process and packing cost incurred at the end of the Process II were: Packing Materials Direct Wages Factory Overheads 4,000 3,500 4,500 Required: (1) Prepare Statement of Equivalent Production, Cost per unit and Process I A/c. Prepare Statement of Equivalent Production, Cost per unit and Process II A/c.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
100%
Transcribed Image Text:Question 28: A Company produces a component, which passes through two processes. During the month
of April, 2013, materials for 40,000components were put into Process I of which 30,000 were completed and
transferred to Process II. Those not transferred to Process Il were 100% complete as to materials cost and
50% complete as to labour and overheads cost. The Process I cost incurred were as follows:
Direct Materials
Direct Wages
15,000
18,000
Factory Overheads
12,000
Of those transferred to Process II, 28,000 units were completed and transferred to finished
goods stores. There was a normal loss with no salvage value of 200 units in Process II. There were
1,800 units, remained unfinished in the process with 100% complete as to materials and 25%
complete as regard to wages and overheads.
No further process material costs occur after introduction at the first process until the end of the
second process, when protective packing is applied to the completed components. The process and
packing cost incurred at the end of the Process II were:
Packing Materials
Direct Wages
Factory Overheads
4,000
3,500
*4,500
Required:
(1) Prepare Statement of Equivalent Production, Cost per unit and Process I A/c.
() Prepare Statement of Equivalent Production, Cost per unit and Process II A/c.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education