The product of a company passes through three processes to completion. They are known as A, B, and C. From past experience it is ascertained that normal loss is incurred in each process as: Process A - 2%, Process B - 5% and Process C - 10%. In each case the percentage of loss is computed on the number of units entering the process concerned. The loss of each possesses a scrape value. The loss of processes 'A' and 'B' is sold at 0.500 baisa per 100 units and that of process 'C' at 2RO per 100 units. The output of each process immediately passes to next process and the finished units are passed from process 'C' into stock. Process C RO 200 600 800 300 Manufacturing Expenses 100 150 20000 units have been issued to process A at a cost of 1000RO. The output of each process has been as under. Process A 19500; Process B 18800; Process C 16000. Prepare Process Accounts Particulars Material Consumed Direct Labor Process A RO Process B RO 400 600 100

The product of a company passes through three processes to completion. They are known as A, B, and C. From past experience it is ascertained that normal loss is incurred in each process as: Process A - 2%, Process B - 5% and Process C - 10%. In each case the percentage of loss is computed on the number of units entering the process concerned. The loss of each possesses a scrape value. The loss of processes 'A' and 'B' is sold at 0.500 baisa per 100 units and that of process 'C' at 2RO per 100 units. The output of each process immediately passes to next process and the finished units are passed from process 'C' into stock. Process C RO 200 600 800 300 Manufacturing Expenses 100 150 20000 units have been issued to process A at a cost of 1000RO. The output of each process has been as under. Process A 19500; Process B 18800; Process C 16000. Prepare Process Accounts Particulars Material Consumed Direct Labor Process A RO Process B RO 400 600 100

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 12E: a. Based on the data in Exercise 17-11, determine the following: 1. Cost of beginning work in...

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