Rumah Kayu Enterprise manufactures five main products; RR-01, SS-03, TT-05, ABX and CCA. All products have to go through process A, B and C. All of three demanded products; RR-01, SS-03 and TT-05 are directly sold to its customers once completed in process C.

The top management of Rumah Kayu Enterprise has decided to increase demands of ABX and CCA by adding some special design and high-tech use. For this purpose, these two products are required to go for further process D. The top management has decided to sell ABX and CCA products after completion of process D.

There is also another product that emerged incidentally (by product) from production of these five main products, called REL-A.It is the company's policy to value the work in progress usingWeighted Average method. The data below relates to the recent year 2021:

Process A

Opening Work in Progress:

Direct Material

Direct Labour Production Overheads

Closing Work in Progress:

Direct Material

Direct Labour Production Overheads

Input to process:

Direct Material

Direct Labour Production Overheads

All losses are detected at the end of the process.

BHEA.BPA/01-00

Units

% of completion

Cost (RM)

44,800

29,100

190,900

70,200 76,300 88,600

90% 75% 65%

185,700

Normal loss is 5% of direct material input and all losses can be sold at a scrap value of RM4 per unit.

560,600 480,100 310,700

Output:

2

Process B

BHEA.BPA/01-00

Units

% of completion

Cost (RM)

Opening Work in Progress:

Direct Material

Direct Labour Production Overheads

Closing Work in Progress:

Direct Material

Direct Labour Production Overheads

Input to process:

Direct Material

Direct Labour Production Overheads

All losses are detected at the end of the process.

Process C

Closing Work in Progress:

Direct Material 38,400 Direct Labour

Production Overheads

Input to process:

Direct Material 30,700 Direct Labour

Production Overheads

Output:

RR-01 100,100 SS-03 90,900 TT-05 80,800 REL-A. 6,600 Process D 98,000

13,200

14,500

240,800

85% 90% 80%

58,400 42,900 47,600

400,100 260,300 160,700

Output:

390,900

Normal loss is 5% of total inputs and all losses can be sold at a scrap value of RM2.50 per unit.

Units

% of completion

Cost (RM)

95% 85% 80%

340,800 350,600 220,100

Selling price per unit at:RM50.50 RM40.50 RM30.50 RM9.50

Normal loss is 4% of inputs from Process B and all losses can be sold at a scrap value of RM2.00 per unit. All losses are detected at the end of the finished goods process.

Joint costs are to be apportioned using sales value method.

3

Process D

There is no work in progress at the beginning and all units are completed at the end of period. Direct materials added to process is 44,200 units at costs of RM81,700. Direct labour and production overheads costs are RM110,300 and RM66,900 respectively. The head of accounting department has expected loss of 10% from total inputs of process D. These scraps can be sold at RM1.50 per unit. The costs for each product will be apportioned based on physical output method.

Outputs from this process are as follows:

Outputs ABX60,300 unit

CCA37,080 units

Required:

Prepare the followings:

2. Process A and any Abnormal Loss or Gain accounts.
4. Process B and any Abnormal Loss or Gain accounts.
6. Process C and any Abnormal Loss or Gain accounts.
8. Process D account.

(22 marks) (25 marks) (35 marks)

(8 marks)

BHEA.BPA/01-00

(Students are required to showALL relevant statementsincluding the statement of apportioning the joint costs to joint products)

(ALL answers of cost per unit (CU) are required to be remained to FOUR (4) decimal places while other answers should be rounded up to the nearest RM)

e. ExplainFIVE (5)examples of companies in Malaysia that use Process Costing.

(10 marks)