Question 03: CPR Abnormal Loss in second department: During the month of may 20xx department No.2 of Halton company received 60,000 units at the rate of 14.50 dollars from department one. Then it transferred out 33000 completed units. In the department there was an abnormal loss of 4000units when 85 percent converted. In Department 2 all the material are added at the beginning of the process. Direct Material added during the month totaled 272,500 dollars and conversion cost is 216,000 dollars. Make a cost of production report for department 2.

Question 03: CPR Abnormal Loss in second department: During the month of may 20xx department No.2 of Halton company received 60,000 units at the rate of 14.50 dollars from department one. Then it transferred out 33000 completed units. In the department there was an abnormal loss of 4000units when 85 percent converted. In Department 2 all the material are added at the beginning of the process. Direct Material added during the month totaled 272,500 dollars and conversion cost is 216,000 dollars. Make a cost of production report for department 2.

Name: Question 03:CPR Abnormal Loss in second department:During the month o
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Question 03:CPR Abnormal Loss in second department:During the month of may 20xx department No.2 of Halton company received60,000 units at the rate of 14.50 dollars from department one. Then it transferredout 33000 completed units. In the department

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Process Cost Systems

Section: Chapter Questions

Problem 17.3TIF

See similar textbooks

Similar questions

CPR Abnormal Loss in second department: During the month of may 20xx department No.2 of Halton company received 50,000 units at the rate of 12.50 dollars from department one. Then it transferred out 43000 completed units. In the department there was an abnormal loss of 2000units when 75 percent converted. In Department 2 all the material are added at the beginning of the process. Direct Material added during the month totaled 162,500 dollars and conversion cost is 204,000 dollars. Make a cost of production report for department 2.Cost from the proceeding department is 625,000 with the per unit cost 12.50.
QUESTION 1 In a certain month, 2000 units were introduced into process 1. The normal loss was expected to be 5% on inputs. At the end of the month, 1,400 units had been produced and transferred to the next process. 460 units were uncompleted and 140 units had been scrapped. It was established that uncompleted units had reached a stage in production as follows: Material 60% Labour 40% Overheads 10% The cost of the 2000 units introduced into process 1 was GH¢5,800.00 Materials introduced into the process amounted to GH¢1,440.00 Direct wages amounted to GH¢3,340.00 Production overhead incurred was GH¢1,670.00 Units scrapped realized GH¢1.00 each The units scrapped have passed through the process, so were 100% completed as regards materials, labour and overheads. You are required to prepare: i.Statement of Equivalent Units ii.Statement of Cost iii.The process 1 account and the abnormal loss account
Question 3Jones 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 processing 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process 1 to process 2. Other costs incurred during the month were: Direct material added $272,000Direct labour $254,000Production overheads $ 120,400At 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…
PROBLEM 23: Cost of Production Report (Continuous) RMG Corporation has the following information for the current month: Units started units Beginning Work in Process: (65% to be done) Total spoilage Spoilage within tolerance level Ending Work in Process: (20% incomplete) Transferred out 175,000 35,000 14,875 6,125 25,375 units units units units ? units Beginning Work in Process Costs: Material P46,250 60,675 Conversion Current Costs: P170,625 265,335 Material Conversion All materials are added at the start of the production process. RMG Corporation inspects goods at 100 percent completion as to conversion. Using the method that does not commingle the beginning and current period production activity Required: (Use five decimal places to compute for unit cost) a. What are equivalent units of production for conversion cost? b. Total costs of transferred out units c. The amount of work in-process, end
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…
10. Beginning work in progress in the assembly department of a company was 3,000 units, 50% completed. During the year, a total of 20,000 units were completed and delivered to customers. Ending work in progress was 5,000 units, with 80% completed with respect to conversion. What are the equivalent units for conversion, assuming the weighted-average method is used? a) 22,500b) 23,500c) 24,000d) 25,000
Problem 1 - Normal and abnormal loss The Iloilo Company uses process costing. In Department 2, conversion costs are incurred uniformly throughout the process. Materials are added at the end of the process, following inspection. Normal spoilage is expected to be 5% of good output. Information pertaining to Department 2 include: Units received from Department 1 is 12,000 at a cost of P84,000. Units transferred to finished goods is 9,000 and there are 2,000 units in the ending inventory which are 70% complete. Costs incurred in this department include: Materials - P18,000 with Labor and overhead at P45,600. How much is the cost of goods manufactured in Department 2?
Problem 4 - Average with Lost Units The Salty Mgf. Co. operates three producing departments A, B and C. It uses the weighted average costi8ng method . The following data are on the production of Department B for October, 2021: Added in Department B Units Transfer in Materials Conversion (in Pesos) (in Pesos) Cost (PhP) In process, Oct. 1 5,000 9,990 1,020 998 Received from Department A 20,000 39,010 21,855 21,877 Total 25,000 Transferred out 19,000 Normal Loss…
Problem 2 - Normal Loss Materials are added at the start of the process in Department B. Units received from Department A cost P11.10 and in Department B, unit costs are P1 for materials and P1.22 for conversion cost. Quantity Data include: In process, July 1 at 8,000 units, 3/4 done; Received from Dept. A is 50,000 units; In process, July 31 is 10,000 units, 1/5 done. Normal loss at the end is 3,000 units. Estimated recovery from spoiled units is P3,000. What should be the accumulated cost of the July 31 work in process?
Question. Abnormal spoilage is 155 units and normal spoilage is 620 units. Beginning work-in-process inventory consisted of 8,800 units; 24,000 units were started; and 26,600 units were completed this period. How many units are in ending work-in-process?
16. Accounting Apparel completed 3,600 expensive bags during the 1st quarter of the current year. The following costs per unit are presented below:Direct materials P200Direct labor P180Factory overhead, including P10 allowance for spoilage P180Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed to the customer at 20% gross profit.If spoilage is due to customer’s intervention, how much is the total gross profit on the order?
Work in Process, Aug 31 (50% complete as to conversion cost) 175,000 Transferred to next department 275,000 Started in August 375,000 Work in Process, Aug 1 (60% complete as to conversion cost) 150,000 Lost in production (normal) 75,000 Under weighted average, what are the eul for conversion?