The product of Bhawan LLC passes through two distinct processes to completion. From the past experience the production manager ascertained that loss incurred for Process 1 and Process 2 is 5% and 4% respectively. The loss of each process possesses a scrap value. The loss of Process 1 and Process 2 are sold at RO 10 per 50 units. Process 1 Process 2 Material Consumed RO 20,000 RO 70,000 Direct Labor RO 1,000 RO 1,500 Manufacturing Expenses RO 2,000 RO 1,250 Indirect expenses amounting to RO 10,000 may be apportioned on the basis of output of each process. 15,000 units have been issued to Process 1 at a cost of RO 15,000. The output of Process 1 is 14,000 and Process 2 is 13,600. Production manager requested you to prepare process accounts, normal loss account and abnormal accounts.
The product of Bhawan LLC passes through two distinct processes to completion. From the past experience the production manager ascertained that loss incurred for Process 1 and Process 2 is 5% and 4% respectively. The loss of each process possesses a scrap value. The loss of Process 1 and Process 2 are sold at RO 10 per 50 units.
|
|
Process 1 |
Process 2 |
|
Material Consumed |
RO 20,000 |
RO 70,000 |
|
Direct Labor |
RO 1,000 |
RO 1,500 |
|
Manufacturing Expenses |
RO 2,000 |
RO 1,250 |
Indirect expenses amounting to RO 10,000 may be apportioned on the basis of output of each process. 15,000 units have been issued to Process 1 at a cost of RO 15,000. The output of Process 1 is 14,000 and Process 2 is 13,600.
Production manager requested you to prepare process accounts, normal loss account and abnormal accounts.
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