Rosewell Ltd produces Netbell, a product requiring two processes. Normal loss in each process is 10%. The following information relates to Period 2: Direct materials (4,000 units) Added direct materials (1,200 units) Direct labour Production overheads Output transferred to Process 2 Output transferred to finished goods Scrapped units are sold for $4 each Process 1 32 400 18 640 24 000 3 800 units Process 2 S 6 480 20 000 33 000 4 250 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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B.
C.
D.
Prepare process 2 account
Prepare abnormal loss and abnormal gain account
Prepare scrap account
Transcribed Image Text:B. C. D. Prepare process 2 account Prepare abnormal loss and abnormal gain account Prepare scrap account
Rosewell Ltd produces Netbell, a product requiring two processes. Normal loss in each process
is 10%. The following information relates to Period 2:
Direct materials (4,000 units)
Added direct materials (1,200 units)
Direct labour
Production overheads
Output transferred to Process 2
Output transferred to finished goods
Scrapped units are sold for $4 each
Process 1
S
32 400
18 640
24 000
3 800 units
Process 2
S
6 480
20 000
33 000
4 250 units
Transcribed Image Text:Rosewell Ltd produces Netbell, a product requiring two processes. Normal loss in each process is 10%. The following information relates to Period 2: Direct materials (4,000 units) Added direct materials (1,200 units) Direct labour Production overheads Output transferred to Process 2 Output transferred to finished goods Scrapped units are sold for $4 each Process 1 S 32 400 18 640 24 000 3 800 units Process 2 S 6 480 20 000 33 000 4 250 units
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