Sparkling Beverages makes one of its products by way of three separate stages. Details of production for the month ending 31 January were as follows: Process Fementing Distilling $780,000 Bottling Input materiat Material added Direct Labour cost Manufacturing Overhead 65,000 litres $89,000 $153,500 $126,000 5% 55,000 litres 53,000 litres 48,000 litres $18.00Aitre| $30.00/litre $114,600 $122,000 8% $225,600 $193, 100 5% Normal losses Output Scrap value of losses 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.
Sparkling Beverages makes one of its products by way of three separate stages. Details of production for the month ending 31 January were as follows: Process Fementing Distilling $780,000 Bottling Input materiat Material added Direct Labour cost Manufacturing Overhead 65,000 litres $89,000 $153,500 $126,000 5% 55,000 litres 53,000 litres 48,000 litres $18.00Aitre| $30.00/litre $114,600 $122,000 8% $225,600 $193, 100 5% Normal losses Output Scrap value of losses 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please assist with questions 1 and 2. thank you
Transcribed Image Text:Sparkling Beverages makes one of its products by way of three separate stages. Details of
production for the month ending 31* January were as follows:
Process
Fementing Distilling
$780,000
Bottling
Input material:
65,000 litres
Material added
$89,000
$225,600
$193, 100
Direct Labour cost
$114,600
$122,000
$153,500
Manufacturing Overhead
Normal losses
Output
Scrap value of losses
$126,000
8%
5%
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
The abnormal loss/gain account(s) showing Sparkling Beverages true loss/gain.
ii)
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