Tulipamwe Windhoek (TW) operates a process costing system to manufacture honey. The company buys raw honey...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Tulipamwe Windhoek ("TW") operates a process costing system to manufacture honey. The company buys raw honey from the farmers concentrated in the Zambezi region of Namibia. The process involves extracting raw-honey and fitering it to remove all forms of impurities (e.g. wax and bee stingers). The final product known as the "HoneyDew" is packaged into 500 grams (g) containers and sold to the local market Raw honey is the only direct material required for the process. Raw honey required for the HoneyDew is added at the beginning of the process. Conversion costs are incurred evenly throughout the process. A normal loss is detected at inspection point which occurs when the process is 70% complete. The normal loss is 5% of the input raw honey that reaches this point. All losses in the process are sold at NS2 per kilo. One (1) kilo of the raw-honey adjusted for losses and/or gains yields one (1) kilogram of HoneyDew. The foliowing information relates to the process for the month ended 31 August 2020: Details Notes Quantity Amount Sales – HoneyDew Opening inventory of finished goods (HoneyDew) ?? N$783 250 150 units N$?? Closing inventory of finished goods (HoneyDew) ?? units N$?? Opening work-in-progress (WIP) – 60% complete 2 1 200 kg NS64 800 Closing WIP - 80% complete 750 kg NS?? Raw-honey put into production in the current period 5 800 kg NS331 300 3 Direct labour costs: current period 3 N$56 920 Production overheads current period 3 NS60 000 Notes: 1. HoneyDew was sold at N$65 per unit in the month of August 2020. 2. N$10 800 of the opening WIP value relates to the conversion costs and the balance thereof relates to the raw-honey costs. 3. TW completed and transferred 6 000 kilograms during the month. Requirement Marks 3.1 Prepare the actual quantity statement for TW for the month of August 2020. 10 3.2 Calculate TW's actual closing finished goods value as it would have appeared in the profit statement for the month of August 2020. 17 3.3 Briefly contrast the treatment of a normal loss value to that of an abnormal loss value in the profit statement applying process costing principles. - Ignore the implications of scrap value(s). 2 N.B. Where applicable show all workings. Round off your workings and final answer to two decimal places. Total 29 Tulipamwe Windhoek ("TW") operates a process costing system to manufacture honey. The company buys raw honey from the farmers concentrated in the Zambezi region of Namibia. The process involves extracting raw-honey and fitering it to remove all forms of impurities (e.g. wax and bee stingers). The final product known as the "HoneyDew" is packaged into 500 grams (g) containers and sold to the local market Raw honey is the only direct material required for the process. Raw honey required for the HoneyDew is added at the beginning of the process. Conversion costs are incurred evenly throughout the process. A normal loss is detected at inspection point which occurs when the process is 70% complete. The normal loss is 5% of the input raw honey that reaches this point. All losses in the process are sold at NS2 per kilo. One (1) kilo of the raw-honey adjusted for losses and/or gains yields one (1) kilogram of HoneyDew. The foliowing information relates to the process for the month ended 31 August 2020: Details Notes Quantity Amount Sales – HoneyDew Opening inventory of finished goods (HoneyDew) ?? N$783 250 150 units N$?? Closing inventory of finished goods (HoneyDew) ?? units N$?? Opening work-in-progress (WIP) – 60% complete 2 1 200 kg NS64 800 Closing WIP - 80% complete 750 kg NS?? Raw-honey put into production in the current period 5 800 kg NS331 300 3 Direct labour costs: current period 3 N$56 920 Production overheads current period 3 NS60 000 Notes: 1. HoneyDew was sold at N$65 per unit in the month of August 2020. 2. N$10 800 of the opening WIP value relates to the conversion costs and the balance thereof relates to the raw-honey costs. 3. TW completed and transferred 6 000 kilograms during the month. Requirement Marks 3.1 Prepare the actual quantity statement for TW for the month of August 2020. 10 3.2 Calculate TW's actual closing finished goods value as it would have appeared in the profit statement for the month of August 2020. 17 3.3 Briefly contrast the treatment of a normal loss value to that of an abnormal loss value in the profit statement applying process costing principles. - Ignore the implications of scrap value(s). 2 N.B. Where applicable show all workings. Round off your workings and final answer to two decimal places. Total 29
Expert Answer:
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
Posted Date:
Students also viewed these accounting questions
-
Which of the following is true about a process costing system? A process costing system cannot use standard costs A process costing system restates Work in Process Inventory in terms of completed...
-
Sepulveda Corporation uses a process costing system to manufacture laptop PCs. The following information summarizes operations for its VeryLite model during the quarter ending March 31, Year 1: Units...
-
The Lloyd Company uses a process costing system There were no units in the beginning workinprocess, 1,400 were started and 1,000 units were completed and transferred out The units at the end of the...
-
Using the Internet, explore the most useful mobile applications for a business or industry of your choice. Also explore mobile applications for this business or industry that are not currently...
-
Citate the following cases. What is the status of each? Using the RIA citator, list five cases in which each has been cited. Without reading the citing cases, did each of the subsequent cases follow...
-
Easecom Company is a manufacturer of videoconferencing products. Regular units are manufactured to meet marketing projections, and specialized units are made after an order is received. Maintaining...
-
What is the major difference between a sample and a census?
-
Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that follows. Assume that all current liabilities are non-interest-bearing liabilities and that no...
-
$ 143 is placed in an account that earns a nominal 8 percent interest, compounded quarterly. Calculate its worth in 8 years. Use 2 decimal places for your final answer.
-
At the beginning of the year, Carla Vista Company had total assets of $763,000 and total liabilities of $296,000. Answer the following questions. (a) If total assets increased $134,000 during the...
-
Company X's smelter has the following production and cost data for September: Production: 200 units are started to be produced, 100% in material and 82% in conversion cost; started production of...
-
You are the new CEO of this company and have been hired to improve company performance. As such, it is your responsibility to conduct a strategic audit of the company and its closest industry...
-
Anyone earning an income of K4500 or less is exempt from paying income tax. Explain the principle behind the tax thresh hold that makes governments exclude some categories of workers from paying...
-
Assume that people will spend $0.60 of every extra dollar they earn. Further assume that the real interest rate decreases, and this causes gross private investment to increase by $75 billion....
-
How does an increase in isothermal cure temperature affect the time to gelation in thermosetting polymers?
-
1. Calculate the entropy of a six sided dice if you toss is 100 times. 2. What is the physical meaning of kTd(log(W)) = kBT (other than the fact that this is TdS?
-
Recall that Just CD's had estimated $1,200,000 of MOH for the year and 62,000 DL hours, resulting in a predetermined MOH rate of $18/DL. hour. By the end of the year the company had actually incurred...
-
Should U.S. antidumping laws be stated in terms of average total costs or average variable costs?
-
Units of abnormal spoilage inferred rather than identified. Explain.
-
Corporate Printing Company currently leases its only copy machine for $1,500 a month. The company is considering replacing this leasing agreement with a new contract that is entirely commission...
-
1. Do Exercise 17-29 using the FIFO method. 2. ZanyBrainy's management seeks to have a more consistent cost per equivalent unit. Which method of process costing should the company choose and why?...
-
Calculate the volatility and the current price of oil futures implied by the call 1600 August and the call 1700 August of Figure 19.8 by using the Black-Scholes formula with \(T=.25\). OIL CRUDE OIL...
-
A company issues a \(10 \%\) coupon bond that matures in 5 years. However, this company is in trouble, and it is estimated that each year there is a probability of .1 that it will default that year....
-
Consider a continuous-time environment, with \(e\) as a variable outside of the market. (a) Suppose the final payoff is \(V\left(x_{e}, T ight)=x_{e}(T)\). Find \(V\left(x_{e}, t ight)\). (b) Find a...
Study smarter with the SolutionInn App