The product of a manufacturing concern passes through two processes A and then to finished stock. It is ascertained that in each process normally 5% of the total weight is lo 10% is scrap which from Processes A and B realizes Rs. 80 per ton and Rs. 200 per ton respective The following are the figures relating to both the processes : The following are the figures relating to both the processes: Process A 1,000 125 Process B 70 Materials in tons Cost of materials per ton in rupees Wages in rupees Manufacturing expenses in rupees Output in tons 200 28,000 8,000 830 10,000 5,250 780 Prepare Process Cost Accounts showing cost per ton of each process. There was no stock or w in-progress in any process.

The product of a manufacturing concern passes through two processes A and then to finished stock. It is ascertained that in each process normally 5% of the total weight is lo 10% is scrap which from Processes A and B realizes Rs. 80 per ton and Rs. 200 per ton respective The following are the figures relating to both the processes : The following are the figures relating to both the processes: Process A 1,000 125 Process B 70 Materials in tons Cost of materials per ton in rupees Wages in rupees Manufacturing expenses in rupees Output in tons 200 28,000 8,000 830 10,000 5,250 780 Prepare Process Cost Accounts showing cost per ton of each process. There was no stock or w in-progress in any process.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Truman Company manufactures a product in a single process. The following information is available: 2,500 kilos valued at $14.40 per kilo $8,000 $38,500 $30,500 Input Material Material Added Direct Labour Cost Incurred Manufacturing Overhead Incurred Normal Losses Scrap value of losses Completed and transferred to Finished Goods The cost per unit is: O a. $43.20 O b. $45.20 O c. $50.24 O d. $48.00 10% of input $20.00 per kilo 2,150 kilos
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Assume the following production data taken from the records of CONEY Manufacturing Co: Transferred out 130,000 units Started in process 150.000 units Ending work in process (2/8 complete) 45,000 units 40% of the materials are added when the processing is halfway complete with the balance added when 80% complete. Beginning work in process, if any, needs 3/5 to be completed. There are no spoiled units. 1. What is the Equivalent Units of Production for Direct Materials using the Weighted Average method? 2. What is the Equivalent Units of Production for Conversion Cost using the Weighted Average method?
The Baker Company manufactures a product in a single process. The following information isavailable:Input material 5,000 kilos valued at $18,000Material added $4,000Direct labour cost incurred $14,000Manufacturing overhead incurred $20,500Normal losses 10% of inputScrap value of losses $5.00 per unitUnits completed and transferred out 4,300 unitsi) Calculate the cost per completed unitii) What is the value of the units completed and transferred to finished goods?iii) What is the value of the unexpected losses?iv) What is the manufacturer’s true loss?v) Prepare the journal entries necessary to record the assignment of direct materials anddirect labour and the allocation of manufacturing overhead to the process. Also, give thejournal entries for the transfer of units completed to Finished Goods Inventory.
A-1
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