Answered: to production for the month of June…

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 7E: Calculating unit costs; units lost in production Gray Brothers Products Inc. manufactures a liquid...

See similar textbooks

Related questions

Question

QUESTION 2- PROCESS COSTING

Crystal Company Ltd. makes a single product using two processes. Quality control check takes place during

the process, at which point, rejected units are separated from good units.

The following details relate to production for the month of June 20X22 for Process 2.

Work-in-process, beginning inventory: -0-
Transfer from Process 1: 15,000 units valued at $51.40 each
Other manufacturing costs incurred during the month:

Direct material added	$513,000
Direct labour	$365,000
Manufacturing overhead	$211,000

Normal losses were estimated to be 4% of input during the period. The scrap value of any loss is $38 per
At inspection 1,750 units were rejected as These units had reached the following degree of completion:

Input material 100%

Direct material added 50%

Conversion costs 30%

12,000 units were completed and transferred to Finished Goods
Work-in-process at the end of June had reached the following degree of completion:

Input material 100%

Direct material added 80%

Conversion costs 40%

Required:

Prepare a statement of equivalent production to determine the equivalent units for direct materials (From Process 1 & Direct Material Added), and conversion costs and the cost per equivalent unit for direct materials and conversion
Calculate the:
- Total cost of units completed and transferred to Finished Goods inventory
- Cost of abnormal losses
- Cost of ending work-in-process inventory in Process
Prepare Crystal Company Ltd Work-In-Process Inventory - Process 2 T-account, clearly showing the ending
State the journal entries necessary to record the assignment of direct materials, direct manufacturing wages and manufacturing overhead applied to Process Also give the journal entries to record the cost of goods completed and transferred to finished goods.
Given that 15% of the unexpected losses were as a result of pilferage, prepare the abnormal spoilage statement, clearly showing Crystal Company Ltd Product’s true

Expert Solution

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Decision to Sell before or after additional processing

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions