C Ltd manufactures a range of products and the data below refer to one product which...

 

Transcribed Image Text:

C Ltd manufactures a range of products and the data below refer to one product which goes through one process only. The company operates a 13 four-weekly reporting system for process and products costs and the data given below relate to Period 10. There was no opening WIP stock. 5,000 units of materials input at GHe 2.94 per unit entered the process. GH¢ Further direct materials added Direct wages incurred Production overhead Normal loss is 3% of input. Closing WIP was 800 units but these were incomplete, having reached the following percentages of completion for each of the elements of cost listed: Direct materials added Direct wages Production overhead 13,830 6,555 7,470 Direct materials added Direct wages Production overhead 25 270 units were scrapped after a quality control check when the units were at the following degrees of completion. 50 33', 75 66² 16%, Units scrapped, regardless of the degree of completion, are sold for GHe 1 each and it is company policy to credit the process account with the scrap value of normal loss units. i. Prepare the Period 10 process account. ii. Calculate the abnormal gain or loss account. iii. Scrap a/c C Ltd manufactures a range of products and the data below refer to one product which goes through one process only. The company operates a 13 four-weekly reporting system for process and products costs and the data given below relate to Period 10. There was no opening WIP stock. 5,000 units of materials input at GHe 2.94 per unit entered the process. GH¢ Further direct materials added Direct wages incurred Production overhead Normal loss is 3% of input. Closing WIP was 800 units but these were incomplete, having reached the following percentages of completion for each of the elements of cost listed: Direct materials added Direct wages Production overhead 13,830 6,555 7,470 Direct materials added Direct wages Production overhead 25 270 units were scrapped after a quality control check when the units were at the following degrees of completion. 50 33', 75 66² 16%, Units scrapped, regardless of the degree of completion, are sold for GHe 1 each and it is company policy to credit the process account with the scrap value of normal loss units. i. Prepare the Period 10 process account. ii. Calculate the abnormal gain or loss account. iii. Scrap a/c

Answer rating: 100% (QA)

Process AC Closing WIP 800 units Amount 5160 Abnormal Loss AC Closing Balance td to Profit and Loss ... View the full answer