Question 3 Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process i to process 2. Other costs incurred during the month were: Direct material added $272,000 Direct labour Production overheads $254,000 $ 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process 1 100% 80% Direct material added Conversion costs 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process i 100% Direct material added 60% Conversion costs 40% There were no unfinished goods in process 2 at the beginning of the period.

Question 3 Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process i to process 2. Other costs incurred during the month were: Direct material added $272,000 Direct labour Production overheads $254,000 $ 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process 1 100% 80% Direct material added Conversion costs 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process i 100% Direct material added 60% Conversion costs 40% There were no unfinished goods in process 2 at the beginning of the period.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 7BE: In October, the cost of materials transferred into the Rolling Department from the Casting...

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Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes.Inspection takes place during the processing operation, at which point bad units are separatedfrom good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of inputduring the period. The following data relates to process 2 for the month of October. DuringOctober, 20,000 units valued at $400,000 were transferred from process 1 to process 2. Othercosts incurred during the month were: Direct material added $272,000Direct labour $254,000Production overheads $ 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degreeof completion: Transfer from process 1 100%Direct material added 80%Conversion costs 50% Work-in-progress at the end of October was 4,000 units and had reached the following degreeof completion: Transfer from process 1 100%Direct material added 60%Conversion costs 40% There were no unfinished goods in process 2 at the beginning of…
Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process 1 to process 2. Other costs incurred during the month were: Direct material added $272,000 Direct labour $254,000 Production overheads $ 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process 1 100% Direct material added 80% Conversion costs 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process 1 100% Direct material added 60% Conversion costs 40% There were no…