X Ltd. manufactures product A which yields two by-products B and C. In a period the amount spent up to the point of separation was OMR 20,600. Subsequent expenses were: Materials (in OMR) A: 300 B: 200 C: 150 Direct Wages (in OMR) A: 400 B: 300 C: 200 Overhead (in OMR) A: 300 B: 270 C: 280 Gross sales value of product A, B and C was RO 15,000, RO 10,000 and RO 5,000 respectively. It was estimated that the net profit as a percentage of sales in B and C would be 25% and 20% respectively. Ascertain the profit earned on A.

X Ltd. manufactures product A which yields two by-products B and C. In a period the amount spent up to the point of separation was OMR 20,600. Subsequent expenses were: Materials (in OMR) A: 300 B: 200 C: 150 Direct Wages (in OMR) A: 400 B: 300 C: 200 Overhead (in OMR) A: 300 B: 270 C: 280 Gross sales value of product A, B and C was RO 15,000, RO 10,000 and RO 5,000 respectively. It was estimated that the net profit as a percentage of sales in B and C would be 25% and 20% respectively. Ascertain the profit earned on A.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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X Ltd. manufactures product A which yields two by-products B and C. In a period the amount spent up to the point of separation was RO 20,600. Subsequent expenses were: A Materials (in RO) 300 200 150 Direct Wages (in RO) 400 300 200 Overhead (in RO) 300 270 280 Gross sales value of product A, B and C was RO 15,000, RO 10,000 and RO 5,000 respectively. It was estimated that the net profit as a percentage of sales in B and C would be 25% and 20% respectively. Ascertain the profit earned on A. Product Sales Profit Estimated Post Separation Proportion of Cost Cost Joint Cost B 田 Sales Of A Joint Cost of A Post Separation Cost Profit
MIX Inc. is conducting a joint process which results to three products. The following production data were provided by MIX Inc. for the current period:Product Name Units Produced Selling price per unit at split off pointAce 10,000 P40Bat 15,000 P20Can 25,000 P12Additional data for the period were provided:All the ace items were sold for a gross profit of P100,000.The joint costs were allocated using physical method.Requirement:1. What is the gross profit/(loss) if all the Bat items are sold in current year?2. Assuming the joint costs are fixed, what is the joint cost allocated to can items using the relative sales value method?
Sharpest Ltd produces three products (A, B and C) and one by-product (D) in its joint process. The following information relates to production at the end of the current month: Product Units produced Sales value at split off Further processing costs Final sales value A 13000 R18 R24 R3 B 18000 R28 N/A R28 C 22000 R26 N/A R26 D 4500 R1.5 R1 R4 If the total cost of the joint process was R286000 and the sales value at split off method is used by Sharpest Ltd to apportion the costs, calculate the total costs attributable to product A. a. R48675.57 b. R50825.14 c. R50283.21 d. R47268.35 e. R55146.40
Blue Incorporated manufactures a product with the following cost structure: Price per unit Selling price R12 Production costs: Material R2 Labour R2 Variable overheads R1 Fixed overheads R5 000 Over a three-year period the production and sales of the product are as follows: Y1 Y2 Y3 Production 2 000 1 000 2 000 Sales 1 000 2 000 2 000 Required: 1.1 You are required to produce the Statement of Financial Performance over the three-year period under the absorption costing. 1.2 Evaluate the application of the absorption costing method in profit reporting.
The following particulars are extracted from the records of a company. Product A Product B Sales (per unit) RO. 100 RO. 120 Consumption of material Material cost 2 kg 3 kg RO. 10 RO. 15 Direct wages cost RO. 15 RO. 10 Direct expenses RO. 5 RO. 6 Machine hours used 3 Overhead expenses: Fixed 10 Variable 15 20 Direct wage per hour is RO.5. Comment on the profitability of each product (both use the same raw material) when: (i) Total sales potential in units is limited Production capacity (in terms of machine hours) is the limiting factor. Material is in short supply (ii) (iv) Sales potential in value is limited.
A company manufactures 1000units of outputs using 5000units of materials @ GHC30 each, and pays factory workers, indirect production expenses, and administrative expense of GHC100000, GHC50000, and GHC30000 respectively. If the company sold two-thirds of the goods produced, the total product cost as well as total expenses for the given period is O A. GHC300000 and GHC200000 respectively O B. GHC200000 and GHC30000 respectively OC. GHC230000 and GHC30000 respectively D. GHC300000 and GHC230000 respectively
Joint products A, B and C are produced by JNT Corp. For the month just ended, these data are available: Using the market value method, the joint cost apportioned to each product will be: A. A – P22,652; B – P13,843; C – P13,335 B. A – P19,995; B – P19,014; C – P10,821 C. A – P22,440; B – P16,005; C – P11,385 D. A – P24,357; B – P14,885; C – P10,588
Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W2 400 4 1,600 Product P8 800 2 1,600 Total direct labor-hours 3,200 The direct labor rate is $31.10 per DLH. The direct materials cost per unit is $197.60 for Product W2 and $134.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W2 Product P8 Total Labor-related DLHs $ 212,576 1,600 1,600 3,200 Production orders orders 17,938 420 320 740 Order size MHs 236,686 3,820 3,620 7,440 $ 467,200 If the company…
The prime cost for company XYZ was $20,000, while the conversion cost was $25,000. Assume that direct labor cost is three times the direct materials cost and that the manufacturing overhead cost was two times the direct materials cost. Calculate the total manufacturing cost ($). O a. 30,000 O b. 15,000 Oc 10,00O O d. 5,000 O e. 45,000
(a) XYZ Ltd. Produces three products A, B and C for which the standard costs and quantities per unit are as follows: Particulars A B C Output (Units) 10000 20000 30000 Direct material cost per unit Rs60 Rs 40 Rs 20 Direct Labour cost per unit (@Rs 40) Rs 40 Rs 80 Rs 120 Machine hours per unit 3 2 1 Number of purchase requisitions 1000 200 300 Number of machine set-ups 150 100 50 Production overhead = P Rs 1400000 Q Rs 2200000 Department P is labour intensive, and Q is machine intensive. Total labour hours in Dept. P = 140000 and Total machine hours in Dept. Q = 100000 Production overhead by activity Receiving and Inspection Rs 1200000 Production scheduling/ set up= Rs 2400000 Prepare statement of cost per unit under traditional absorption method and activity-based costing approaches. Also compare the result of the two methods and give your comments.…
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?