Question 3 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 separatec 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 $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 Production overheads S 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process i 100% Direct material added Conversion costs 80% 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process i 100% Direct material added 60% Conversion costs 40% There were no unfinished goods in process 2 at the beginning of the period.

Question 3 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 separatec 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 $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 Production overheads S 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process i 100% Direct material added Conversion costs 80% 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process i 100% Direct material added 60% Conversion costs 40% There were no unfinished goods in process 2 at the beginning of the period.

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 13E: Errors in equivalent unit computation Napco Refining Company processes gasoline. On June 1 of the...

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Errors in equivalent unit computation Napco Refining Company processes gasoline. On June 1 of the current year, 6,400 units were completed in the Blending Department. During June, 55,000 units entered the Blending Department from the Refining Department. During June, the units in process at the beginning of the month were completed. Of the 55,000 units entering the department, all were completed except 5,200 units that were completed. The equivalent units for conversion costs for June for the Blending Department were computed as follows: List the errors in the computation of equivalent units for conversion costs for the Blending Department for June.
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…
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