KT Ltd. produces a product EMM which passes through two processes before it is completed and...
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KT Ltd. produces a product EMM which passes through two processes before it is completed and transferred to finished stock. The following data relate to May 2019: Particulars Process Finished stock A () B() () Opening Stock Direct Materials 5,000 5,500 10,000 9,000 9,500 Direct Wages Factory Overheads Closing Stock Inter-process profit included in opening stock Output of Process A is transferred to Process B at 25% profit on the transfer price and output of Process B is transferred to finished stock at 20% profit on the transfer price. Stock in process is valued at prime cost. Finished stock is valued at the price at which it is received from Process B. Sales during the period are 75,000. Prepare the Process cost accounts and Finished stock account showing the profit element at each stage. 5,000 6,000 4,600 2,030 2,000 2,490 5,000 1,000 4,000 KT Ltd. produces a product EMM which passes through two processes before it is completed and transferred to finished stock. The following data relate to May 2019: Particulars Process Finished stock A () B() () Opening Stock Direct Materials 5,000 5,500 10,000 9,000 9,500 Direct Wages Factory Overheads Closing Stock Inter-process profit included in opening stock Output of Process A is transferred to Process B at 25% profit on the transfer price and output of Process B is transferred to finished stock at 20% profit on the transfer price. Stock in process is valued at prime cost. Finished stock is valued at the price at which it is received from Process B. Sales during the period are 75,000. Prepare the Process cost accounts and Finished stock account showing the profit element at each stage. 5,000 6,000 4,600 2,030 2,000 2,490 5,000 1,000 4,000
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Process I Account Particulars Total Cost Profit Particulars Total Cost Profit Opening Stock 5000 500... View the full answer
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
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