Satish & Shamoon Ltd manufactures a single product. The product is processed in three departments. During February 2021, the costs incurred and units processed in department 2 (Assembling Department) were as follows: Units Rs. Units received from department 1 55,000 2,057,500 Cost added by department 2   Material 988,000 Direct labor 488,000 Production overheads 244,000 Units transferred to department 3 50,000 Closing work in process 5,000 Details of percentage of completion of closing work in process are material 70%, labor 50% and production overheads 30%. Required: Prepare process account of department 2 for the month of February 2021 by AVCO method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Satish & Shamoon Ltd manufactures a single product. The product is processed in three departments.
During February 2021, the costs incurred and units processed in department 2 (Assembling Department) were as follows:

Units
Rs.

Units received from department 1
55,000
2,057,500

Cost added by department 2

 

Material

988,000

Direct labor

488,000

Production overheads

244,000

Units transferred to department 3
50,000


Closing work in process
5,000


Details of percentage of completion of closing work in process are material 70%, labor 50% and production overheads 30%.

Required: Prepare process account of department 2 for the month of February 2021 by AVCO method.

Satish & Shamoon Ltd manufactures a single product. The product is processed in three
departments.
During February 2021, the costs incurred and units processed in department 2
(Assembling Department) were as follows:
Units
Rs.
Units received from department 1
55,000
2,057,500
Cost added by department 2
Material
988,000
Direct labor
488,000
Production overheads
244,000
Units transferred to department 3
50,000
Closing work in process
5,000
Details of percentage of completion of closing work in process are material 70%, labor
50% and production overheads 30%.
Required: Prepare process account of department 2 for the month of February 2021 by
AVCO method.
Transcribed Image Text:Satish & Shamoon Ltd manufactures a single product. The product is processed in three departments. During February 2021, the costs incurred and units processed in department 2 (Assembling Department) were as follows: Units Rs. Units received from department 1 55,000 2,057,500 Cost added by department 2 Material 988,000 Direct labor 488,000 Production overheads 244,000 Units transferred to department 3 50,000 Closing work in process 5,000 Details of percentage of completion of closing work in process are material 70%, labor 50% and production overheads 30%. Required: Prepare process account of department 2 for the month of February 2021 by AVCO method.
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