Pass-Well Company Limited produces a product that passes through two processes, Process 1 and Process 2 .
Question:
Pass-Well Company Limited produces a product that passes through two processes, Process 1 and
Process 2. Details of activities for the month of December, 2020 is as follows;
Process 1 Material introduced (4,000 units) @GH₵200.00 | Process 2 |
Material added | GH₵25,000.00 |
Labour Costs (@GH₵400 per hour) 200hrs | 600hrs |
Output in units 3,500units | 3,150units |
Scrap value of normal loss GH₵20 per unit Note;
| GH₵40 per unit |
a. You are required to prepare the relevant accounts | (12 marks) |
b. You are required to prepare the relevant Accounts With practical example, differentiate between cost assignment and cost apportionment; product cost and period costs; direct cost and indirect cost.
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan