Bexx Enterprise specialized in producing canned sardine that passes through two manufacturing processes. The cost of...

  

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Bexx Enterprise specialized in producing canned sardine that passes through two manufacturing processes. The cost of processing for each process in December 2020 was as follows: Direct material Process Material W 1 Process 2 12,000 kg at RM1.50 per kg Material X 4,000 kg at RM0.90 per kg Material Y 3,000 kg at RM2.50 per kg Material Z 5,000 kg at RM2 per kg Direct labour (RM) 15,000 18,000 Direct expenses (RM) 4,450 4,620 Expected loss 5% of input 850 kg Actual output (kg) 18,000 22,500 Additional information: (i) The overhead absorption rate is 50% and 40% respectively of the direct labor cost for each process. (ii) Process 1 scrap can be sold at RM0.10/kg whilst process 2 scrap can be sold at RM 0.15/kg. Required: (a) Process 1 account. (b) Process 2 account. (13 marks) (12 marks) Bexx Enterprise specialized in producing canned sardine that passes through two manufacturing processes. The cost of processing for each process in December 2020 was as follows: Direct material Process Material W 1 Process 2 12,000 kg at RM1.50 per kg Material X 4,000 kg at RM0.90 per kg Material Y 3,000 kg at RM2.50 per kg Material Z 5,000 kg at RM2 per kg Direct labour (RM) 15,000 18,000 Direct expenses (RM) 4,450 4,620 Expected loss 5% of input 850 kg Actual output (kg) 18,000 22,500 Additional information: (i) The overhead absorption rate is 50% and 40% respectively of the direct labor cost for each process. (ii) Process 1 scrap can be sold at RM0.10/kg whilst process 2 scrap can be sold at RM 0.15/kg. Required: (a) Process 1 account. (b) Process 2 account. (13 marks) (12 marks)

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