Cost Management Accounting Costing Method

CMAC-Process Costing Math COSTING METHODS QUESTION 1: JOB COSTING A company operates a job costing system. Job number 6789 will require $345 of direct materials and $210 of direct labour, which is paid $14 per hour. Production overheads are absorbed at the rate of $30 per direct labour hour and nonproduction overheads are absorbed at the rate of 40% of prime cost. Required What is the total expected cost of the job? QUESTION 2 : PROCESS COSTIN G XYZ Ltd Chemical Ltd processes a range of products including a detergent, 'Washo', which passes through 3 processes before completion and transfer to the nished goods warehouse. During April, data relating to this product were as follows: Process I Process II Process 111 Total Basic raw material (10,000 units) $6,000 - $6,000 Direct raw material added in process $8,500 $9,500 $5,500 $23,500 Direct wages $4,000 $6,000 $12,000 $22,000 Direct expenses $1,200 $930 $1,340 $3,470 Output (in Units) 9,200 8,700 7,900 Normal loss in process of input (per cent) 10% 5% 10% Scrap value sales per unit $0.20 $0.50 $1.00 The production overhead is absorbed as a percentage of direct wages. There was no stock at the start or at the end of any process. Required: You are required to prepare the following accounts: i) Process 1, ii) Process 11 iii) Process 111, iv) Abnormal gain/loss