The Jamaica Company manufactures a product in a single process, The following information is available: Input Material Material Added Direct Labour Cost Incurred Manufacturing Overhead Incurred Normal Losses Scrap value of losses Completed and transferred to Finished Goods Time left 1:02:56 2,500 kilos valued at $14.40 per kilo $8,000 $38,500 $30,500 10% of input $20.00 per kilo 2,150 kilos Given that 20 of the unexpected losses was because of pilferage, What is the amount to be charged to the costing profit and loss account for the period? Select one: ○ A. $2,000 ○ B. $4,800 ○ C. $3,200 ○ D. $2,800

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 13PA: Selected information from Skylar Studios shows the following: Prepare journal entries to record the...
Question
The Jamaica Company manufactures a product in a single process, The following
information is available:
Input Material
Material Added
Direct Labour Cost Incurred
Manufacturing Overhead Incurred
Normal Losses
Scrap value of losses
Completed and transferred to Finished Goods
Time left 1:02:56
2,500 kilos valued at $14.40 per kilo
$8,000
$38,500
$30,500
10% of input
$20.00 per kilo
2,150 kilos
Given that 20 of the unexpected losses was because of pilferage, What is the amount
to be charged to the costing profit and loss account for the period?
Select one:
○ A. $2,000
○ B. $4,800
○ C. $3,200
○ D. $2,800
Transcribed Image Text:The Jamaica Company manufactures a product in a single process, The following information is available: Input Material Material Added Direct Labour Cost Incurred Manufacturing Overhead Incurred Normal Losses Scrap value of losses Completed and transferred to Finished Goods Time left 1:02:56 2,500 kilos valued at $14.40 per kilo $8,000 $38,500 $30,500 10% of input $20.00 per kilo 2,150 kilos Given that 20 of the unexpected losses was because of pilferage, What is the amount to be charged to the costing profit and loss account for the period? Select one: ○ A. $2,000 ○ B. $4,800 ○ C. $3,200 ○ D. $2,800
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