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Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at s20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process i to process 2. Other costs incurred during the month were: Direct material added $272,000 Direct labour $254,000 $ 120,400 Production overheads At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process i 100% 80% Direct material added Conversion costs 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process 1 100% Direct material added 60% Conversion costs 40% There were no unfinished goods in process 2 at the beginning of the period.

Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at s20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process i to process 2. Other costs incurred during the month were: Direct material added $272,000 Direct labour $254,000 $ 120,400 Production overheads At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process i 100% 80% Direct material added Conversion costs 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process 1 100% Direct material added 60% Conversion costs 40% There were no unfinished goods in process 2 at the beginning of the period.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 7BE: In October, the cost of materials transferred into the Rolling Department from the Casting...
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iii)Calculate:
- Cost per unit of finished product, by element of cost and total.
- Cost of units transferred to process 3
- Cost of abnormal loss/gain
- Cost of uncompleted units in WIP at the end of October.

Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at s400,000 were transferred from process i to process 2. Other costs incurred during the month were: Direct material added $272,000 Direct labour $254,000 $ 120,400 Production overheads At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process 1 100% Direct material added 80% Conversion costs 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process 1 Direct material added 100% 60% Conversion costs 40% There were no unfinished goods in process 2 at the beginning of the period.
Transcribed Image Text:Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at s400,000 were transferred from process i to process 2. Other costs incurred during the month were: Direct material added $272,000 Direct labour $254,000 $ 120,400 Production overheads At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process 1 100% Direct material added 80% Conversion costs 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process 1 Direct material added 100% 60% Conversion costs 40% There were no unfinished goods in process 2 at the beginning of the period.
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