Noordheuwel Manufacturers' production system consists of two consecutive processes: process 1 and process 2. The output...

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Noordheuwel Manufacturers' production system consists of two consecutive processes: process 1 and process 2. The output from process 1 is transferred to process 2 and the output of process 2 is sent to the packaging department. 141/ The information provided below relates to process 2 of Noordheuwel Manufacturers' production system in January 2023: INFORMATION: Transfer from process 1 Materials added Conversion costs Output to finished goods Output scrapped Normal loss 400 kg at a cost of 3 000 kg 2 800 kg 400 kg 10% of materials added in the period Tools Sign The scrapped units were complete in materials added but only 50 per cent complete in respect of conversion costs. All scrapped units have a value of R40 each. There was no opening work in progress, but 200 kg were in progress at the end of the month, at the following stages of completion: 80 per cent complete in materials added; and 40 per cent complete in conversion costs. G REQUIRED Write up the following accounts for the process (show all calculations leading to the three accounts): 4.1 Process 2 account. 4.2 Scrap account. 4.3 Abnormal account. Noordheuwel Manufacturers' production system consists of two consecutive processes: process 1 and process 2. The output from process 1 is transferred to process 2 and the output of process 2 is sent to the packaging department. 141/ The information provided below relates to process 2 of Noordheuwel Manufacturers' production system in January 2023: INFORMATION: Transfer from process 1 Materials added Conversion costs Output to finished goods Output scrapped Normal loss 400 kg at a cost of 3 000 kg 2 800 kg 400 kg 10% of materials added in the period Tools Sign The scrapped units were complete in materials added but only 50 per cent complete in respect of conversion costs. All scrapped units have a value of R40 each. There was no opening work in progress, but 200 kg were in progress at the end of the month, at the following stages of completion: 80 per cent complete in materials added; and 40 per cent complete in conversion costs. G REQUIRED Write up the following accounts for the process (show all calculations leading to the three accounts): 4.1 Process 2 account. 4.2 Scrap account. 4.3 Abnormal account.

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41 Process 2 Account Materials added 3000 kg Conversion c... View the full answer