Practice Problem 6 Product Z passes through three processes - A, B and C. The expenses incurred in the three processes during the year 2007 were as under: Particulars Processes A B Units of input issued Details 1000 RO RO RO Cost per unit Direct Materials 50 1600 3315 3220 Direct labor 2600 8000 6392 Sale price of output (per unit) 70 100 200 The normal loss of the three processes, calculated on the input of every process was A- 5%, B - 15% and C- 20%. The loss of process A was sold at 1RO per unit, and that of Process B at 3 RO and C at 6RO per unit. Two-third of the output of Process A and one- half of the output of Process B was passed to the next process and balance was sold. The entire output of Process C was sold. Prepare three process accounts.

Practice Problem 6 Product Z passes through three processes - A, B and C. The expenses incurred in the three processes during the year 2007 were as under: Particulars Processes A B Units of input issued Details 1000 RO RO RO Cost per unit Direct Materials 50 1600 3315 3220 Direct labor 2600 8000 6392 Sale price of output (per unit) 70 100 200 The normal loss of the three processes, calculated on the input of every process was A- 5%, B - 15% and C- 20%. The loss of process A was sold at 1RO per unit, and that of Process B at 3 RO and C at 6RO per unit. Two-third of the output of Process A and one- half of the output of Process B was passed to the next process and balance was sold. The entire output of Process C was sold. Prepare three process accounts.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 10CE: Selected activities and other information are provided for Patterson Company for its most recent...

See similar textbooks

Similar questions

1 (a) Product P63 is made by three sequential processes, I, II, and III. In process III a by-product arises and after further processing in process BP, at a cost of K2 per unit, by product BP9 is produced. Selling and distribution expenses of K1 per unit are incurred in marketing BP9 at a selling of K9 per unit. Process I III III Standards provide for: Normal loss in process, of input, of 10% 5% 10% Loss in process, having a scrap value, per unit, of K1 K3 K5 For the month of April 2020…
A company makes one product which passes through only one process. The details of the process account are as follows; material cost- 20000kg @ GH¢1.3/kg, labour cost- GH¢12000, and production overheads- GH¢5700. The actual output from the process is 18800kg with expected normal loss of 5% of input. The value of abnormal loss isA. GH¢460B. GH¢441C. GH¢456D. GH¢437
A company makes one product which passes through only one process. The details of the process account are as follows material cost- 20000kg @ GHC1.3/kg, labour cost- GH¢12000, and production overheads- GHC5700. The actual output from the process is 18800kg with expected normal loss of 5% of input. The value of abnormal loss is O A. GHC437 B. GHC441 OC. GHC460 D. GHC456
Q8 Read the following Case and write appropriate answer with calculation related to case A product is manufactured as a result of two processes, A and B. details of process B for the month of august were as follow: Particulars Rs Materials transferred from process A 10,000 kg valued at Rs.40,500 Labor Costs 1,000 hours valued Rs.5.616 Overheads 50% of labor cost Output transferred to finished goods 8000 kg Closing work in progress 900 kg Normal loss is 10% of input and losses do not have scrap value. Closing work in progress is 100% complete for material, and 75% complete for both labor and overheads. i)What is the value of the abnormal loss in Rs? Nil 489 544 546 12. ii) What is the value of the output (finished units) nearest to Rs? Rs.43,977 Rs.39,139 Rs.43,488 Rs.43,680 iiI) What are the equivalent units of production as to material and labor & overheads in August? Material…
Practice Problem 2 In process Y, 75 units of a commodity were transferred from process X at a cost of RO 1,310. The labour and overhead expenses amounting to RO 190 were incurred. 20 percent of the units entered are normally lost and sold @ RO 4 per unit. The output of the process was 70 units. Prepare process Y Account
How much should be the accumulated cost of work in process as of May 31? a. P90,000 b. P100,000 c. P190,000 d. P220,000
Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected ConsumptionRatios Activity Driver Quantity Wafer A Wafer B 7. Inserting dies Number of dies 2,200,000 0.7 0.3 8. Purchasing materials Number of purchase orders 1,900 0.2 0.8 1. Developing test programs Engineering hours 11,500 0.25 0.75 3. Testing products Test hours 20,000 0.6 0.4 ABC assignments $155,000 $155,000 Total overhead cost $310,000 Required: 1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar. Inserting…
In recent years, Pina Colada Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Salvage Useful Life Depreciation Machine Acquired Cost Value (in years) Method 1 Jan. 1, 2020 $ 100,100 $ 12,500 8 Straight-line 2 July 1, 2021 92,000 10,000 5 Declining-balance Nov. 1, 2021 123,000 9,000 6 Units-of-activity For the declining-balance method, Pina Colada Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 38,000. Actual hours of use in the first 3 years were 2021, 600; 2022, 4,200; and 2023, 7,300.
ok t For each of the following independent cases (A to E), compute the missing values in the table: Case A C D E Prime Conversion Cost Cost $ 9,560 $ 16,470 $ 57,300 110,600 48,750 Direct Materials 3,950 10,130 41,500 20,500 Direct Manufacturing Labor Overhead 7,400 12,650 14,400 $ 10,860 25,200 24,300 Total Manufacturing Cost 42,730 69,250 57,500
XYZ Inc. manufactures a component D12, and two main products F45 and P67. The following details relate to each of these items: D12 D45 P67 Selling price ? 146 159 Material cost 10 15 26 Component D12 (bought-in price) ? 25 25 Direct labour 5 10 15 Variable overheads 6 12 18 Total variable cost per unit 21 62 84 Fixed overhead costs: P per annum P per annum P per annum Avoidable* 9,000.00 18,000.00 40,000.00 Non-avoidable 36,000.00 72,000.00 160,000.00 Total 45,000.00 90,000.00 200,000.00 * The avoidable fixed costs are product-specific fixed costs that would be avoided if the product or component were to be discontinued. 1. Assuming that the annual demand for component D12 is 5,000 units and that XYZ Inc. has sufficient capacity to make the component itself, the maximum price that should be paid to an external supplier for 5,000 components per year is 2. Assuming that component D12 is bought from an external supplier for P25.00 per unit, the number of units…
Preparation of Process Accounts (With process losses and no WIP) Practice Problem 4 Product X in a manufacturing unit passes through three processes- Process A, Process B and Process C. The expenses incurred in the three processes during the year 2007 were as under. Particulars Process A Process B Process C Units of input issued 8500 Details RO RO RO Cost per unit 150 Materials 28500 25000 18500 Direct Labor 12000 23000 23110 Direct Expenses 2250 17200 8100 The normal losses and scrap value are as under Particulars Actual Output Normal Process Scrap Value RO Loss Process : A 8075 5 % 2 per unit Process : B 7200 10% 1.5 per unit Process : C 7050 2.5% 1.2 per unit
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases. a. Direct material cost per unit. b. Fees for using a patent of $500,000 plus $0.25 for each unit produced. c. Salary of quality control supervisor. d. Straight-line depreciation per unit on factory equipment. e. Total direct materials cost.