J &G Manufacturing makes a single product by way of three separate processes. Details of production for the month ending June 30 were as follows: Process Process 1 Process 2 Process 3 $390,000 Input material: 16,250 kg Material added $36,750 Direct Labour cost $57,300 $61,000 $92,200 $112,800 Manufacturing Overhead Normal losses $63,000 $97,080 8% 6% 6% 13,250 kg 12,000 kg $16.00/kg| $32.00/kg Output 13,750 kg Scrap value of losses The nature of the process requires equipment to be cleaned at the end of each month; hence there is no opening or closing stock of product in process.
J &G Manufacturing makes a single product by way of three separate processes. Details of production for the month ending June 30 were as follows: Process Process 1 Process 2 Process 3 $390,000 Input material: 16,250 kg Material added $36,750 Direct Labour cost $57,300 $61,000 $92,200 $112,800 Manufacturing Overhead Normal losses $63,000 $97,080 8% 6% 6% 13,250 kg 12,000 kg $16.00/kg| $32.00/kg Output 13,750 kg Scrap value of losses The nature of the process requires equipment to be cleaned at the end of each month; hence there is no opening or closing stock of product in process.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 20E: Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through...
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i)The process account for each process: and
ii)The abnormal loss/gain account(s)showing J & G Manufacturingtrue loss/gain.
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