Unicorn Limited manufactures a single product - Magic Pod.' The following information relating to 'Magic Pod'...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Unicorn Limited manufactures a single product - Magic Pod.' The following information relating to 'Magic Pod' for the month of January: Direct materials Direct labour Overheads Output completed in the month Units ($) 100,000 100,000 14,000 40,000 60,000 There was no beginning or ending work in process in January. A normal loss of 20% is anticipated and all the losses can be sold at a scrap value of $0.2 per unit. Required: (a) (b) Calculate the cost per expected unit of output of 'Magic Pod'. Prepare the Process account for the month of January. (5 marks) (5 marks) A company produces a single product from one process and the following data were related to a period: Opening work-in-progress - 2,000 units Direct materials Direct labour Overheads Costs incurred in the period were: Direct materials Direct labour Overheads Units added in the period: 10,000 units Units completed in the period: 9,000 units Closing work-in-progress: 3,000 units Cost Degree of ($) Completion 3,900 50% 2,240 40% 1,080 30% 7,220 ($) 39,200 29,100 19,200 ADDIA-Management Accounting - Assignment 1 (January-March 2024) 4 | Page Question 3 (Continued) PART B Direct materials Direct labour Overheads Degree of Completion 60% 50% 40% No loss was incurred in the process during the period. The company uses FIFO method in calculating inventory costs. Required: (c) For the period: (i) Calculate the cost of units transferred to finished goods and the cost of closing work-in-progress. (20 marks) (ii) Prepare the Process Account. (10 marks) (d) (e) What are equivalent units and why is it necessary to calculate them? State two features of those manufacturing industries to which process costing will be applied. (6 marks) (4 marks) (Total 50 marks) Unicorn Limited manufactures a single product - Magic Pod.' The following information relating to 'Magic Pod' for the month of January: Direct materials Direct labour Overheads Output completed in the month Units ($) 100,000 100,000 14,000 40,000 60,000 There was no beginning or ending work in process in January. A normal loss of 20% is anticipated and all the losses can be sold at a scrap value of $0.2 per unit. Required: (a) (b) Calculate the cost per expected unit of output of 'Magic Pod'. Prepare the Process account for the month of January. (5 marks) (5 marks) A company produces a single product from one process and the following data were related to a period: Opening work-in-progress - 2,000 units Direct materials Direct labour Overheads Costs incurred in the period were: Direct materials Direct labour Overheads Units added in the period: 10,000 units Units completed in the period: 9,000 units Closing work-in-progress: 3,000 units Cost Degree of ($) Completion 3,900 50% 2,240 40% 1,080 30% 7,220 ($) 39,200 29,100 19,200 ADDIA-Management Accounting - Assignment 1 (January-March 2024) 4 | Page Question 3 (Continued) PART B Direct materials Direct labour Overheads Degree of Completion 60% 50% 40% No loss was incurred in the process during the period. The company uses FIFO method in calculating inventory costs. Required: (c) For the period: (i) Calculate the cost of units transferred to finished goods and the cost of closing work-in-progress. (20 marks) (ii) Prepare the Process Account. (10 marks) (d) (e) What are equivalent units and why is it necessary to calculate them? State two features of those manufacturing industries to which process costing will be applied. (6 marks) (4 marks) (Total 50 marks)
Expert Answer:
Answer rating: 100% (QA)
Answer To solve this problem we need to follow the steps below a Calculate the cost per expected unit of output of Magic Pod Given information Direct ... View the full answer
Related Book For
Vector Mechanics for Engineers Statics and Dynamics
ISBN: 978-0073398242
11th edition
Authors: Ferdinand Beer, E. Russell Johnston Jr., David Mazurek, Phillip Cornwell, Brian Self
Posted Date:
Students also viewed these accounting questions
-
THE COMPANY: Aylmer Industries Inc. (Aylmer) has been in business since Y4. Aylmer has two main business segments. This first segment is the construction of large-scale projects. In Y7, Aylmer had...
-
A company using process costing manufactures a single product which passes through two processes, the output of process 1 becoming the input to process 2. Normal losses and abnormal losses are...
-
EBIT $ 600,000 g 0.0% r 10.0% Shares o/s 200,000 Taxes 25.0% NI $ 450,000 Before Recapitalization: Value of Ops $ 4,500,000 Value per share $ 22.50 EPS $ 2.25 1:13 sthn 1h dialexh Recap: New debt...
-
Nondestructive evaluation is used to measure the properties of components or materials without causing any permanent physical change to the components or materials. It includes the determination of...
-
You are instructed to advise the company secretary of Sleep EZ Hotels on what basis, if any, they might make a claim against IIA. Following: Introduction, Certainty, Formality, Constitution,...
-
Econo Company, an electronics repair store, prepared the unadjusted trial balance shown below at the end of its first year of operations. For preparing the adjusting entries, the following data were...
-
a. Equipment depreciation was $1,500. b. $700 of advertising expense was incurred but not paid. (Use Advertising Payable.) c. Office Supplies on hand at the end of the year totaled $250. The...
-
Please provide short answers (no more than 50 words per question) to the short answer questions. Question 1 A) What is the function of the second law? B) What does exergy tell us?
-
a) Consider the Double Sideband Suppressed Carrier (DSB-SC) modulation system shown in Figure Q3. The output current io and the input voltage V; of the ideal nonlinear device are related by io = aV +...
-
I choose "Tank Attacks" difficult behavior from the Brinkman book, Dealing with People You Can't Stand. And explained how that difficult behavior derives from one of the BEST personality types. 1....
-
1. Design a TM to perform circular left-shift operation. 2. Design a TM to accept the language (0a, 1ab, 2bab 1}. Draw the state-transition diagram, and explain how your TM operates. 3. Let w =...
-
Adopt the rule that no 2-cell is to be sewn to itself. Find the minimum number of 2-cells needed to be make an annulus, a double annulus, a sphere, a torus, and a Mbius strip. Draw them. Take a...
-
Amazing.org is a fictitious company. Amazing.org generates revenue from three main business lines: (1) online store sales, (2) fees for services and memberships, and (3) its Amazing Web Service (AWS)...
-
Given the importance of psychological factors (learning, memory, motivation, personality, and emotions) in consumer behavior, explain the difference between these factors as well as their role in...
-
Solve the relation Exz:Solve therelation ne %3D
-
Describe which characteristics of HR metrics and workforce analytics are likely to result in greater return on investment and organizational impact.
-
Why are information security and privacy important considerations in the design, development, and maintenance of an HRIS?
-
List and discuss the major information security and privacy threats to organizations.
Study smarter with the SolutionInn App