A company manufactures Chemical X, in a single process. At the start of the month there was no work-inprogress. During the month 300 litres of raw material were input into the process at a total cost of $6,000. Conversion costs during the month amounted to $4,500. At the end of the month 250 litres of Chemical X were transferred to finished goods inventory. The remaining work-in-progress was 100% complete with respect to materials and 50% complete with respect to conversion costs. There were no losses in the process and there is no scrap value available during months when losses occur.   If there had been a normal process loss of 10% of input during the month what would the value of this loss have been? A Nil B $450 C $600 D $1,050

Question

A company manufactures Chemical X, in a single process. At the start of the month there was no work-inprogress.

During the month 300 litres of raw material were input into the process at a total cost of $6,000.

Conversion costs during the month amounted to $4,500. At the end of the month 250 litres of Chemical X

were transferred to finished goods inventory. The remaining work-in-progress was 100% complete with respect

to materials and 50% complete with respect to conversion costs. There were no losses in the process and there

is no scrap value available during months when losses occur.

 

If there had been a normal process loss of 10% of input during the month what would the value of this

loss have been?

A Nil

B $450

C $600

D $1,050

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Accounting Functions

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Hello question is attached, thanks.

A: Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is...

Q: An independent CPA is engaged to audit the financial statements of Holland City . The city has a var...

A: The correct option is Option “D”.

Q: Suppose you take a 10-year mortgage for a house that costs $252,923. Assume the following: The annu...

A: mortgage amount =252923 Down payment =10% Down payment =25292.30 mortgage amount =252923-25292.30 mo...

Q: Assume that you are a financial advisor to the CEO of a large conglomerate that has various business...

A: 1. Companies seek sources of funding to grow the business. It is also known as funding or financing....

Q: Sebastian purchases two pieces of equipment for $147,000. Appraisals of the equipment indicate that ...

A: Lump-sum purchase:   When the assets are purchased or bought in a lot in one transaction at a lump ...

Q: Accounts Receivable Analysis A company reports the following: Sales $429,240 Average accounts r...

A: Ratio analysis is a method of measuring the financial position of the organization with different ki...

Q: 5. Record the following transactions for the month of November 2020 in the general journal and post ...

A: Because of the time constraint journal entries ha been provided, please submit the question again to...

Q: Simple Things Industries Ltd. Comparative Balance Sheet December 31, 2014 and 2013   2...

A: Increase / (decrease) amount has to be determined by deducting 2013 dollar amount from 2014 dollar a...

Q: An entity’s unadjusted trial balance does not equal. The following information was determined: • The...

A: Trial balance is prepared to find out the arthimetical accuracy of books of account with all ledger ...

Q: Solvency and Profitability Trend Analysis (Picture is attached and this is the only one I got wrong,...

A: Return on total assets = Net income/Average Total assets where, Average Total assets = (Beginning To...

Q: Problem 9-9 The following information relates to the debt securities investments of Martinez Company...

A: Bonds: It is also known as a fixed-income security, is a debt instrument created for the purpose of ...

Q: Current Position Analysis The following data were taken from the balance sheet of Nilo Company at th...

A: Click to see the answer

Q: Explain the similarities between a job order and a process cost system and features of process cost ...

A: Click to see the answer

Q: Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three...

A: The payback period refers to the time period that is required to recover the initial cost. With the ...

Q: Case:Mercurial Company has made the following information available for its production facility for ...

A: Variance analysis = It is the summarized analysis of the differences between budgeted and actual cos...

Q: Horizontal Analysis of the Income Statement (Picture is attached below and let me know what the righ...

A: Horizontal analysis is prepared to calculate the variance from previous year by showing increase/dec...

Q: 5. Record the following transactions for the month of November 2020 in the general joumal and post t...

A: As posted multiple independent questions we are answering only first question kindly repost the unan...

Q: Which of the following entities can use cost-volume-profit (CVP) analysis?   Multiple Choice   ...

A: CVP analysis is considered as a decision-making tool that helps management to make strategies and ta...

Q: Using the following information: Cost of asset, $280,000 Accumulated depreciation, beginning of year...

A: Depreciation: Depreciation is a method that reallocates the cost of tangible assets over their usefu...

Q: Case:Mercurial Company has made the following information available for its production facility for ...

A: Total Overhead Variance: This is the difference between the budgeted total overhead and the actual t...

Q: Hello, I need formulas explaining the answers,

A: Formula: Account receivables turnover ratio = Net Credit Sales / Average account receivables Average...

Q: Horizontal analysis of income statement (What did I do wrong? Anyone know the correct answers to the...

A: Horizontal analysis is prepared to calculate the variance from previous year by showing increase/dec...

Q: From the following transactions for Casio Company, find the required balances for the month ended No...

A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received an...

Q: You are the lead S-Corporations tax specialist in your area. Your client, Cathyrn, has purchased an ...

A: It refers to a type of a corporation which complies with certain requirements of the Internal Revenu...

Q: Question 2. Grippers sells its rock-climbing shoes worldwide. Grippers expects to sell 8,500 pairs o...

A: Budget is prepared by the management on the basis of past experience. On the basis of the budget, It...

Q: Accrued Product Warranty Fosters Manufacturing Co. warrants its products for one year. The estimated...

A: Warranty expenses has to be booked as per the estimate of warranty claims in past period.  

Q: Case: Mercurial Company has made the following information available for its production facility for...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Connor has made deposits of $78.00 into his savings account at the end of every three months for 10 ...

A: Future value of quarterly deposits is given by  FV = E((1+r)n - 1)/r Where, E = quarterly deposits =...

Q: Case:Mercurial Company has made the following information available for its production facility for ...

A: Variance analysis: This is the study of how the actual results have deviated from the planed or budg...

Q: Lee Sutherlin is a self-employed electrical consultant. He estimates his annual net earnings at $31,...

A: Social Security tax = Annual net earnings x Social Security tax rate Medicare tax  = Annual net earn...

Q: A key ethical issue in cost allocation involves costing in an international context, because the cho...

A: Direct costs are easily traceable but indirect costs are allocated which requires estimates and invo...

Q: During the current year, merchandise is sold for P86,000 cash and for P93,950 on account. The cost o...

A: Gross profit = Sales - Cost of merchandise sold. First, compute the total sales as shown below:

Q: The 2014 comparative balance sheet and 2014 income statement of Simple Things Industries Ltd, have j...

A: Statement of Cash Flow: Statement of cash flow is one of the main financial statement which reports ...

Q: Reconstruct the company’s comparative balance sheet for 2013/2014 and compute and show the missing f...

A: Balance sheet: This statement shows the assets and liabilities held by a company on a particular dat...

Q: A key ethical issue in cost allocation involves costing in an international context, because the cho...

A: Cost allocation is a process of identifying, assigning, aggregating the costs to various cost object...

Q: Factory Closing Decision The Dough Knot Corporation bakes breads, pastries, cookies and every other ...

A: Non-recurring cost refers to those expenses which reflects on the financial statements of the compan...

Q: Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of ...

A: a.

Q: The 2014 comparative balance sheet and 2014 income statement of Simple Things Industries Ltd, have j...

A: As posted multiple independent questions we are answering only first question kindly repost the unan...

Q: 36. LO.3 (Activity analysis) Management at Glover & Lamb Inc. is concerned about controlling fac...

A: As you have posted multiple independent questions, we are answering the first question. Kindly repos...

Q: The coke company sales around in the year of 2019 OMR 300,000. But unfortunately damaged broken coke...

A: This numerical has covered the concept of Net Profit Ratio.

Q: Cost of sales Food and beverages $500,000 Shirts and caps $25,000 Other Expenses Administrative $30,...

A:         Operating statement is also termed as income statement where it shows the company's income a...

Q: The following was taken from Stickers Corp.’s accounting records for the year ended December 31, 201...

A: Raw material used = Raw material purchased - Increase in raw material inventory

Q: From the following Company A adjusted trial balance, prepare simple financial statements, as follows...

A: In the given case we have only revenue is service revenue and expense is the administrative expense,...

Q: The standard costs and actual costs for factory overhead for the manufacture of 2,900 units of actua...

A: Fixed overhead volume variance = Absorbed fixed overhead - Budgeted fixed overhead If the absorbed o...

Q: Problem.No.2(Amalgamation in the nature of merger-pooling of interest method -with statutory reserve...

A: X Ltd. and Y Ltd. merged into XY Ltd.  Calculation of purchase consideration : Particulars X Ltd ...