Question 3 Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes Inspection takes place during the processing operation, at which point bad units are separatec from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process i to process 2. Other costs incurred during the month were: Direct material added $272,000 Direct labour $254,000 Production overheads S 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process i 100% Direct material added Conversion costs 80% 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process i 100% Direct material added 60% Conversion costs 40% There were no unfinished goods in process 2 at the beginning of the period.
Question 3 Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes Inspection takes place during the processing operation, at which point bad units are separatec from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process i to process 2. Other costs incurred during the month were: Direct material added $272,000 Direct labour $254,000 Production overheads S 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process i 100% Direct material added Conversion costs 80% 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process i 100% Direct material added 60% Conversion costs 40% There were no unfinished goods in process 2 at the beginning of the period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What is the work in process inventory - Process 2 T-account?
Transcribed Image Text:Question 3
Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes.
Inspection takes place during the processing operation, at which point bad units are separated
from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input
during the period. The following data relates to process 2 for the month of October. During
October, 20,000 units valued at $400,000 were transferred from process i to process 2. Other
costs incurred during the month were:
Direct material added
$272,000
Direct labour
$254,000
S 120,400
Production overheads
At inspection, 3000 units were rejected as scrap. These units had reached the following degree
of completion:
Transfer from process 1
1o0%
80%
50%
Direct material added
Conversion costs
Work-in-progress at the end of October was 4,000 units and had reached the following degree
of completion:
Transfer from process i
Direct material added
Conversion costs
100%
60%
40%
There were no unfinished goods in process 2 at the beginning of the period.
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