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Q8   Read the following  Case  and write appropriate  answer with calculation related to case A product is manufactured as a result of two processes, A and B. details of process B for the month of august were as follow: Particulars Rs Materials transferred from process A 10,000 kg valued at Rs.40,500 Labor Costs 1,000 hours valued Rs.5.616 Overheads 50% of labor cost Output transferred to finished goods 8000 kg Closing work in progress 900 kg Normal loss is 10% of input and losses do not have scrap value. Closing work in progress is 100% complete for material, and 75% complete for both labor and overheads.   i)What is the value of the abnormal loss in Rs? Nil 489 544 546 12.   ii) What is the value of the output (finished units) nearest to Rs? Rs.43,977 Rs.39,139 Rs.43,488 Rs.43,680   iiI) What are the equivalent units of production as to material and labor & overheads in August? Material                                               Labor& overheads 9,000 units 8,775 units 10,000 units 8,775 units 8,775 units 9,000 units 9,000 units 8,775 units

Q8   Read the following  Case  and write appropriate  answer with calculation related to case A product is manufactured as a result of two processes, A and B. details of process B for the month of august were as follow: Particulars Rs Materials transferred from process A 10,000 kg valued at Rs.40,500 Labor Costs 1,000 hours valued Rs.5.616 Overheads 50% of labor cost Output transferred to finished goods 8000 kg Closing work in progress 900 kg Normal loss is 10% of input and losses do not have scrap value. Closing work in progress is 100% complete for material, and 75% complete for both labor and overheads.   i)What is the value of the abnormal loss in Rs? Nil 489 544 546 12.   ii) What is the value of the output (finished units) nearest to Rs? Rs.43,977 Rs.39,139 Rs.43,488 Rs.43,680   iiI) What are the equivalent units of production as to material and labor & overheads in August? Material                                               Labor& overheads 9,000 units 8,775 units 10,000 units 8,775 units 8,775 units 9,000 units 9,000 units 8,775 units

Financial & Managerial Accounting
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter27: Lean Principles, Lean Accounting, And Activity Analysis
Section: Chapter Questions
Problem 27.7EX: Calculate lead time Williams Optical Inc. is considering a new lean product cell. The present...
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Q8   Read the following  Case  and write appropriate  answer with calculation related to case

A product is manufactured as a result of two processes, A and B. details of process B for the month of august were as follow:

Particulars

Rs

Materials transferred from process A

10,000 kg valued at Rs.40,500

Labor Costs

1,000 hours valued Rs.5.616

Overheads

50% of labor cost

Output transferred to finished goods

8000 kg

Closing work in progress

900 kg

Normal loss is 10% of input and losses do not have scrap value. Closing work in progress is 100% complete for material, and 75% complete for both labor and overheads.

 

i)What is the value of the abnormal loss in Rs?

  1. Nil
  2. 489
  3. 544
  4. 546 12.

 

  1. ii) What is the value of the output (finished units) nearest to Rs?
  2. Rs.43,977
  3. Rs.39,139
  4. Rs.43,488
  5. Rs.43,680

 

iiI) What are the equivalent units of production as to material and labor & overheads in August?

Material                                               Labor& overheads

  1. 9,000 units 8,775 units
  2. 10,000 units 8,775 units
  3. 8,775 units 9,000 units
  4. 9,000 units 8,775 units

 

  1. iv) What is the value of total production cost in Rs?
  2. Rs.8,424
  3. Rs.5,616
  4. Rs.40,500
  5. Rs.48,924

 

  1. v) What is the value of the closing work in progress nearest to Rs?
  2. Rs.4,403
  3. Rs.4,892
  4. Rs.4,947
  5. Rs.4,698
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