Queen drink Co is a manufacturer for a popular soda beverage. It has just ended the following
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Question:
Queen drink Co is a manufacturer for a popular soda beverage. It has just ended the following processes right on the year end stock valuation period.
Process info:
particulars | Units and costs |
Input material | 20,000 units at $15,000 |
Conversion costs | $11,000 |
Normal loss | 5% of input units |
Scrap value on loss units | $1 per unit |
Actual output at the end of process | 19,200 units |
Please be noted that for all loss units could be scrapped shall be treated as side income from the process. There are no closing and opening WIP for this process.
Requirement:
- Calculate the estimated cost per output unit of the process.
- Prepare the accounts for process and related transactions.
- Calculate the abnormal units and its values.
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date: