Brent Ltd produces breakfast cereals in 1 kg boxes. The company normally experiences a loss of 6%
Question:
Brent Ltd produces breakfast cereals in 1 kg boxes. The company normally experiences a loss of 6% in its production process in the form of spoilt units. The cost accountant has reported that these spoilt units normally have a total sales value of N$188. During the month of August, 250 kg of raw material was put into the process at a total cost of N$4 700. Actual production for the month was 220 kg. All the spoilt units were finally sold for a total amount of N$200. Required: Enter the above transactions for the month in the following ledger accounts and balance the accounts at the end of the month: Work in process, Normal loss, and Abnormal loss
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas