Naida Limited manufactures a unique hair oil branded Naidaline. The product undergoes two manufacturing processes before...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Naida Limited manufactures a unique hair oil branded Naidaline. The product undergoes two manufacturing processes before emerging as a complete product. The following information relates to production undertaken during the month of September 2020. Process 1 2 Input 250,000 litres @ Sh. 62.50 per litre Added Costs: Material 5,750,000 4,606,250 4,812,500 3,806,250 Labour Overhead 2,062,500 2,640,000 Normal loss 10% of input 5% of input Scrap value Sh. 18.75 per litre Sh. 42.50 per litre Output: To process 2:200,000 litres To finished goods 162,500 litres To W.I.P C/f 25,000 litres - Previous process costs 100% - Added material 80% - Labour 70% - Overhead 50% There was no opening work-in-progress in either of the two processes. Losses in process 2 had the following degree of completion: previous process costs 100%, added material 70%, labour 50% and overheads 50%. Required: (a) Process accounts for both processes for the month of September 2020 (show all your computations). (16 marks) (b) Explain the implication of the following to the costs of equivalent units: (i) Normal profit (2 marks) (ii) Scrap loss (2 marks) (Total: 20 marks) Naida Limited manufactures a unique hair oil branded Naidaline. The product undergoes two manufacturing processes before emerging as a complete product. The following information relates to production undertaken during the month of September 2020. Process 1 2 Input 250,000 litres @ Sh. 62.50 per litre Added Costs: Material 5,750,000 4,606,250 4,812,500 3,806,250 Labour Overhead 2,062,500 2,640,000 Normal loss 10% of input 5% of input Scrap value Sh. 18.75 per litre Sh. 42.50 per litre Output: To process 2:200,000 litres To finished goods 162,500 litres To W.I.P C/f 25,000 litres - Previous process costs 100% - Added material 80% - Labour 70% - Overhead 50% There was no opening work-in-progress in either of the two processes. Losses in process 2 had the following degree of completion: previous process costs 100%, added material 70%, labour 50% and overheads 50%. Required: (a) Process accounts for both processes for the month of September 2020 (show all your computations). (16 marks) (b) Explain the implication of the following to the costs of equivalent units: (i) Normal profit (2 marks) (ii) Scrap loss (2 marks) (Total: 20 marks)
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The following events occurred during the month of September 2016 for the business of Elizas Webdesign Service: Sept. 1 2 4 6 7 8 Eliza deposited $40000 cash into the business bank account. A...
-
The following events occurred during the month of September 2016 for the business of Elizas Webdesign Service: Sept. 1 2 4 6 7 8 Eliza deposited $40000 cash into the business bank account. A...
-
Prancing Horse Ltd is a company that imports and sells desktop clocks. The company has an FOB shipping point agreement with their supplier Enzo Ltd. On 1 January 2010 Prancing Horse Ltd has 17 clocks...
-
Consider a situation with J identical firms that have marginal abatement cost functions for j=1,,J. The marginal damage function is equal to D'(E)=d.EDetermine the optimal allocation and the optimal...
-
The following are line items included in the 2012 statement of cash flows prepared by Goodlys Clothing Company. Depreciation expense..............$ 5,500 Increase in accounts receivable .............
-
Kresna Dubchuk lives in Kenya and is in the process of selling her Canadian real property, situated in New Brunswick, which has been rented to various tenants over the last 10 years. The selling...
-
Which two methods of capital investment analysis ignore present value?
-
Tim Jarosz Company had the following account balances at year-end: Cost of Goods Sold $60,000, Inventory $15,000, Operating Expenses $29,000, Sales Revenue $115,000, Sales Discounts $1,200 and Sales...
-
1.A 10-year bond with 12.5% coupon rate and yield to maturity is 14.5%, assuming annual coupon payment, whereas, another bond with same maturity period, coupon and YTM rate is available but with...
-
Lunatics, an e-commerce sports company wants to buy Rowdy Trading Cards at a cost of $504 million. Rowdy will operate for 20 years. They expect annual cash flows from operations to be $70.1 million...
-
PlasFib is a manufacturer of synthetic fibers used for making furniture upholstery. PlasFib manufactures fiber in 50 colors on one line. When changing over from one color to the next, part of the...
-
Fill in the Blank. The response of a system to suddenly applied nonperiodic excitation is called ___________ response.
-
Design a piston-cylinder-type viscous damper to achieve a damping constant of \(175 \mathrm{~N}-\mathrm{s} / \mathrm{m}\) using a fluid of viscosity \(35 \times 10^{-3} \mathrm{~N}-\mathrm{s} /...
-
What is the balance of trade? Use the information in the following table on Mexico's 2007 international transactions to answer exercises 4-6 (the amounts are the U.S. dollar values in millions):...
-
What is the equilibrium level of real GDP? Use the following equations C $100+.8Y 1 = $200 G= $250 X $100 2Y
-
Use a demand and supply graph of the youth smoking market to show the effects of the tax cut in eastern Canada. Assume that the initial price is $6.00, the initial quantity is 100 units, and each...
-
ELIMINATION OF BIAS IN NON- PROBABILITY PURPOSIVE TECHNIQUE Discuss how the research remained objective throughout the study. Include the following: - Use of gender neutral words; - Identifying...
-
If M = 7, s = 2, and X = 9.5, what is z?
-
The following budget information relates to Flossy Limited for the three months to 31 March 2013: 1. 2. 3. Capital expenditure to be incurred on 20 February 2013 is expected to amount to 470,000. 4....
-
Appleton used to operate her business as a sole trader entity. She has recently converted it into a limited liability company. Appleton owns 80 per cent of the ordinary (voting) shares, the remaining...
-
Nelson Ltd was incorporated in 2003 with an authorized share capital of 500,000 1 ordinary shares, and 200,000 5 per cent cumulative preference shares of 1 each. The following trial balance was...
-
The _________ curve for a product is the horizontal summing of the demand curves of the individuals in the market.
-
A change in _________ leads to a change in quantity demanded, illustrated by a(n) _________ demand curve.
-
An individual _________ curve reveals the different quantities of a particular good a person would be willing and able to buy at various possible prices in a particular time interval, other things...
Study smarter with the SolutionInn App