Question 28: A Company produces a component, which passes through two processes. During the mon of April, 2013, materials for 40,000components were put into Process I of which 30,000 were completed and transferred to Process II. Those not transferred to Process Il were 100% complete as to materials cost and 50% complete as to labour and overheads cost. The Process I cost incurred were as follows: Direct Materials 15,000 Direct Wages Factory Overheads *18,000 12,000 Of those transferred to Process II, 28,000 units were completed and transferred to finished goods stores. There was a normal loss with no salvage value of 200 units in Process II. There were 1,800 units, remained unfinished in the process with 100% complete as to materials and 25% complete as regard to wages and overheads. No further process material costs occur after introduction at the first process until the end of the second process, when protective packing is applied to the completed components. The process and packing cost incurred at the end of the Process II were: Packing Materials Direct Wages Factory Overheads 4,000 3,500 4,500 Required: (1) Prepare Statement of Equivalent Production, Cost per unit and Process I A/c. Prepare Statement of Equivalent Production, Cost per unit and Process II A/c.
Question 28: A Company produces a component, which passes through two processes. During the mon of April, 2013, materials for 40,000components were put into Process I of which 30,000 were completed and transferred to Process II. Those not transferred to Process Il were 100% complete as to materials cost and 50% complete as to labour and overheads cost. The Process I cost incurred were as follows: Direct Materials 15,000 Direct Wages Factory Overheads *18,000 12,000 Of those transferred to Process II, 28,000 units were completed and transferred to finished goods stores. There was a normal loss with no salvage value of 200 units in Process II. There were 1,800 units, remained unfinished in the process with 100% complete as to materials and 25% complete as regard to wages and overheads. No further process material costs occur after introduction at the first process until the end of the second process, when protective packing is applied to the completed components. The process and packing cost incurred at the end of the Process II were: Packing Materials Direct Wages Factory Overheads 4,000 3,500 4,500 Required: (1) Prepare Statement of Equivalent Production, Cost per unit and Process I A/c. Prepare Statement of Equivalent Production, Cost per unit and Process II A/c.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 9P: Clearwater Candy Co. had a cost per equivalent pound for the month of 4.56 for materials, 1.75 for...
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Transcribed Image Text:Question 28: A Company produces a component, which passes through two processes. During the month
of April, 2013, materials for 40,000components were put into Process I of which 30,000 were completed and
transferred to Process II. Those not transferred to Process Il were 100% complete as to materials cost and
50% complete as to labour and overheads cost. The Process I cost incurred were as follows:
Direct Materials
Direct Wages
15,000
18,000
Factory Overheads
12,000
Of those transferred to Process II, 28,000 units were completed and transferred to finished
goods stores. There was a normal loss with no salvage value of 200 units in Process II. There were
1,800 units, remained unfinished in the process with 100% complete as to materials and 25%
complete as regard to wages and overheads.
No further process material costs occur after introduction at the first process until the end of the
second process, when protective packing is applied to the completed components. The process and
packing cost incurred at the end of the Process II were:
Packing Materials
Direct Wages
Factory Overheads
4,000
3,500
*4,500
Required:
(1) Prepare Statement of Equivalent Production, Cost per unit and Process I A/c.
() Prepare Statement of Equivalent Production, Cost per unit and Process II A/c.
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