Question: cost Accounting question Shown below is an extract from the accountant's working papers for the process cost accounts for October 2020 , of the final
Shown below is an extract from the accountant's working papers for the process cost accounts for October 2020 , of the final two operations in a factory producing one particular type of industrial chemical. Normally no losses are expected in Process 4. The company operates the FIFO method of charging opening stock to production and, at the beginning of October 2020, the value of the opening stock in Process 4 was K.16,400. Process 5 additional costs - Materials 10,175; Conversion costs K18,000, Normal loss cn Process 5 is 10% of input; all losses may be sold as scrap at K.2 per kg. Required Calculate the total cost of the 8,000kg of chemical transferred from process 4 to process 5 during October 2020. (10 Marks) Calculate the total cost incurred by process 4 during October 2020 for each of the following: (i) Material transferred from process 3 (2 Marks) (ii) Process 4 materials (2 Marks) (iii) Process 4 conversion costs (2 Marks)
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