Veromora Manufactures sand products in its forming department. Veromora operate a process costing system. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Total overhead for the period was 2,707,250. A further analysis of overhead was provided as fallow Machine setup Material Handling Procurement Deliveries The organization provided the fallowing activities No of setup Movement of material No of orders No of deliveries Machine setup Material Handling Procurement Deliveries Units Direct Materials TZS Materials added Completed during the month Normal loss 8% of input Total costs 1,360,000 Scrap value of the normal loss is TZS 55 per unit. There is no opening or closing stock of work-in- progress in December. Required: Prepare for the month of December: (i) (ii) (iii) Product Z 2 The process account; The normal loss (scrap) account; The abnormal loss/abnormal gain account. Labour TZS 784 The management accountant of Veromora has provided you with the following summary data for December regarding to Product z. 1,284,000 8 4 1 % of overhead 34.5221% 19.481% 13.5285% 32.4684% Product X 6 4 1 2 Overheads TZS 10,000 9,000
Veromora Manufactures sand products in its forming department. Veromora operate a process costing system. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Total overhead for the period was 2,707,250. A further analysis of overhead was provided as fallow Machine setup Material Handling Procurement Deliveries The organization provided the fallowing activities No of setup Movement of material No of orders No of deliveries Machine setup Material Handling Procurement Deliveries Units Direct Materials TZS Materials added Completed during the month Normal loss 8% of input Total costs 1,360,000 Scrap value of the normal loss is TZS 55 per unit. There is no opening or closing stock of work-in- progress in December. Required: Prepare for the month of December: (i) (ii) (iii) Product Z 2 The process account; The normal loss (scrap) account; The abnormal loss/abnormal gain account. Labour TZS 784 The management accountant of Veromora has provided you with the following summary data for December regarding to Product z. 1,284,000 8 4 1 % of overhead 34.5221% 19.481% 13.5285% 32.4684% Product X 6 4 1 2 Overheads TZS 10,000 9,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Please don't attach image
Transcribed Image Text:Veromora Manufactures sand products in its forming department. Veromora operate a process
costing system. All direct materials are added at the beginning of the process, and conversion
costs are added evenly during the process.
Total overhead for the period was 2,707,250. A further analysis of overhead was provided as
fallow
Machine setup
Material Handling
Procurement
Deliveries
The organization provided the fallowing activities
No of setup
Movement of material
Machine setup
Material Handling
Procurement
Deliveries
No of orders
No of deliveries
Materials added
Completed during the month
Normal loss 8% of input
Direct Materials
TZS
Product Z
2
8
4
1
The management accountant of Veromora has provided you with the following summary data
for December regarding to Product z.
Units
Total costs
1,360,000
Scrap value of the normal loss is TZS 55 per unit.
There is no opening or closing stock of work-in-
progress in December.
Required: Prepare for the month of December:
The process account;
(1)
(ii)
The normal loss (scrap) account;
(iii)
The abnormal loss/abnormal gain account.
Labour
TZS
% of overhead
34.5221%
19.481%
13.5285%
32.4684%
1,284,000
Product X
6
4
1
2
Overheads
TZS
10,000
9,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education