The following data relate to Process 2 of Danvee Ltd, a camera film manufacturer, for the...

 

 

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The following data relate to Process 2 of Danvee Ltd, a camera film manufacturer, for the financial year ended 31 December 2020. At the beginning of the year, there were 800 units partly completed which had the following values: Input material (from process 1) Material introduced Labour Overheads Material introduced Labour Overheads Value GHC 8,200 5,600 3,200 2,400 During the period, 4300 units were manufactured from Process I at a value of GHC46,500. Other costs were: Input material Material introduced Labour Overheads GHC 24,000 19,500 18,200 Percentage complete 100 55 At the end of the year, the closing WIP was 600 units which were at the following stages of completion: 100% complete 50% complete 45% complete 40% complete 45 The balance of 4500 was transferred to finished goods. (1) Calculate the value of units transferred to finished goods and the value of WIP using the FIFO method. (ii) Prepare the Process 2 Account using the FIFO method (iii) Discuss three ways in which the proceeds from the sale of By-products can be treated The following data relate to Process 2 of Danvee Ltd, a camera film manufacturer, for the financial year ended 31 December 2020. At the beginning of the year, there were 800 units partly completed which had the following values: Input material (from process 1) Material introduced Labour Overheads Material introduced Labour Overheads Value GHC 8,200 5,600 3,200 2,400 During the period, 4300 units were manufactured from Process I at a value of GHC46,500. Other costs were: Input material Material introduced Labour Overheads GHC 24,000 19,500 18,200 Percentage complete 100 55 At the end of the year, the closing WIP was 600 units which were at the following stages of completion: 100% complete 50% complete 45% complete 40% complete 45 The balance of 4500 was transferred to finished goods. (1) Calculate the value of units transferred to finished goods and the value of WIP using the FIFO method. (ii) Prepare the Process 2 Account using the FIFO method (iii) Discuss three ways in which the proceeds from the sale of By-products can be treated

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Step 1 Under FIFO methods goods that are old will be transferred first Value of units transferred and closing work in progress is calculated with the ... View the full answer