RST LLC processes Product Z through two distinct processes - Process I and Process II. On completion, it is transferred to finished stock. From the following information for the year 2020-21, prepare Process I and Process II and Finished Stock A/C. Process I 7,500 units OMR 60 Raw materials used Raw materials cost per unit Transfer to next process/finished stock 7,050 Normal loss (on Input) 5% Direct Wages Direct Expenses OMR 135750 60% of Direct Wages 20% of Direct Wages OMR 12.500 Process II 6,525 10% OMR 129250 65% of Direct Wages 15% of Direct Wages OMR 37.500 Manufacturing Overheads Realizable value of scrap per unit 6,000 units of finished goods were sold at a profit of 15% on cost. Assume that there was no opening c closing stock of work in progress.

RST LLC processes Product Z through two distinct processes - Process I and Process II. On completion, it is transferred to finished stock. From the following information for the year 2020-21, prepare Process I and Process II and Finished Stock A/C. Process I 7,500 units OMR 60 Raw materials used Raw materials cost per unit Transfer to next process/finished stock 7,050 Normal loss (on Input) 5% Direct Wages Direct Expenses OMR 135750 60% of Direct Wages 20% of Direct Wages OMR 12.500 Process II 6,525 10% OMR 129250 65% of Direct Wages 15% of Direct Wages OMR 37.500 Manufacturing Overheads Realizable value of scrap per unit 6,000 units of finished goods were sold at a profit of 15% on cost. Assume that there was no opening c closing stock of work in progress.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...

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X Co. Ltd. produces three types of products A, B and C and keeps accounts for Process I, Process II and Process III. Following statements show the relative importance of each type of product in each process : Process I Points Process II Points Process III Points Product A Product B 2 4 2 4 2 1 Product C 8 3 2 Costs for each process for March, 2019 are as follows : Process I Process II $ 9,000 3,000 5,100 Process III $ 9,000 1,800 2,400 Total Materials Labour Overheads 12,000 4,200 3,000 $ 30,000 9,000 10,500 19,200 17,100 13,200 49,500 Production during the period : Product A 600 units ; Product B 300 units ; Product C 900 units. You are required to- (a) prepare a statement showing weighted average production for each process and (b) compute the cost for each type of product.
Jorasmi Enterprise Trial Balance as at 31 December 2020 Particulars Debit Credit RM RM Inventory of raw materials 1 Jan 2020 Inventory of finished goods 1 Jan 2020 Work in progress 1 Jan 2020 Wages (direct RM180,000, factory indirect RM145,000) Royalties Carriage inwards (on raw materials) Purchases of raw materials Productive machinery (cost RM280,000) Administration computers (cost RM20,000) General factory expenses Lighting Factory power Administration salaries Sales representative salaries Commission on sales Rent Insurance General administration expenses Bank charges Discount allowed Carriage outwards Sales Account receivable and accounts payable Bank Cash 21,000 38,900 13,500 325,000 7,000 3,500 370,000 230,000 12,000 31,000 7,500 13,700 44,000 30,000 11,500 12,000 4,200 13,400 2,300 4,800 5,900 1,000,000 64,000 142,300 16,800 1,500 60,000 Drawings Capital as at 1 Jan 2020 357,800 TOTAL 1,421,800 1,421,800
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Question 2: Mirbat Company has the following information for the period ended 31 December 2020. OMR 380000 OMR 210000 Direct material purchases Direct labor OMR 28000 Factory maintenance Power and heat-factory Direct Expenses Indirect factory labor Freight In Depreciation - Factory Advertisement expenses Inventories, 1 January 2020: OMR 14500 10 % of the prime cost OMR 23000 OMR 6500 OMR 24800 OMR 4500 Direct Material OMR 44300 Work-in-process OMR 51200 Finished goods OMR 77000 Purchase returns of direct materials OMR 3400 Depreciationadministrative OMR 11800 Inventories, 31 December 2020: Material OMR 18000 Work-in process OMR 35000 Finished goods 4000 Units Total Production Units 36000 units Finished goods are valued at the current unit manufacturing cost. You are required to prepare: I. Manufacturing Statement IL Calculate unit production cost.
Question 2: Muscat Corany has the following information for the period ended 31 December 2020. Direct material purchases OMR 380000 Direct labor OMR 210000 Factory maintenance Power and heat-factory Direct Expenses Indirect factory labor Freight In Depreciation - Factory Advertisement expenses Inventories, 1 January 2020: OMR 28000 OMR 14500 10 % of the prime cost OMR 23000 OMR 6500 OMR 24800 OMR 4500 Direct Material OMR 44300 Work-in-process Finished goods OMR 51200 OMR 77000 Purchase returns of direct materials OMR 3400 Depreciation-administrative Inventories, 31 December 2020: OMR 11800 Material OMR 18000 Work-in process Finished goods OMR 35000 4000 Units Total Production Units 36000 units Finished goods are valued at the current unit manufacturing cost. You are required to prepare: I. Manufacturing Statement II. Calculate unit production cost.
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Data obtained from Antanian Manufacturing Inc. for July 2020 are as follows:Assembly DepartmentBeginning WIP- 100% RM, 60% CC 2.000 unitEnding WIP- 90% RM, 25% CC 1.400 unitsUnit put in process 6.000 unitsLost units (end of process) 100 unitsSpoiled units (abnormal) 200 unitsCost of Beginning WIP:- RM $ 450,000- CC 550,000Current Manufacturing Costs:- RM $ 750,000- CC 1,150,000 Required: Prepare cost of production (COGM) report for Assembly Department by using weighted averagemethod of process costing!
You are provided with the following information for the month of October 2020 O/B WIP unit started C/B wip Number of unit: 2730 27931 1875 Percentage com:25% 60% The material in the production process are added at the following stages: Material A: 0% Material B : 40% Material C : 80% What is the equivalent units of material B in the opening work in progress
ssume the following information: Milling Department Materials Conversion Total Cost of beginning work in process inventory $ 10,000 $ 15,000 $ 25,000 Costs added during the period 291,600 394,500 686,100 Total cost $ 301,600 $ 409,500 $ 711,100 Assume the equivalent units of production for materials and conversion, when using the weighted-average method, are 5,200 units and 5,000 units, respectively. If the equivalent units in ending work in process inventory for materials and conversion are 400 units and 200 units, respectively, then what is the total cost of ending work in process for the Milling Department?
Problem 2. Cena company employs Weighted Average process costing system in the assembly department and FIFO process costing system in the finishing department concerning its only product which undergoes production in assembly department and finishing department. The following data for the year ended December 31, 2020 are provided: ASSEMBLY DEPARTMENTUnits Cost January 1, 2020 December 31, 2020January 1, 2020December 31, 2020100,000 units – 40% completed as to conversion costCost of Direct material – P3M Cost of Direct labor – P5MCost of Factory Overhead – P2M 150,000 units – 80% completed ? as to conversion costFINISHING DEPARTMENTUnits Cost Units started during the year 400,000 units DM cost added during 2020 – P12MDL cost added during 2020 – P15MFOH cost added during 2020 – P13M 50,000 units – 70% incomplete conversion costCost of Transferred in – P10M Cost of Direct material – P6M Cost of Direct labor – P1MCost of Factory Overhead – P3M 30,000 units – 10%…
A company manufactures a chemical product by a series of operations in three processes. Raw material is fed into Process I and the finished chemical that comes out of Process III is transferred to finished goods store. The following particulars relating to operations for April 2019 are given below : Process I Process II Process III Raw materials issued 80,000 kgs. Direct wages Overhead costs $9,60,000 $1,25,600 $1,68,000 3% $1,42,500 $1,24,690 1% $1,72,000 $1,77,280 2% Normal processing loss (% of input) Output transferred to next process Work-in-process (cb) (Processed material awaiting transfer to next process) Prepare the accounts of Processes I, II, and III and also abnormal loss and abnormal gain accounts, if any. 69,000 kgs. 74,000 kgs. 3,000 69,400 kgs. 2,400
Preparation of Process Accounts (Without process losses and no WIP) Practice Problem 1 Following figures show the cost of a product which passes through three processes. In January 2020, 1000 units were produced. Prepare the process accounts and find out cost per unit of each process. Particulars Process I (in RO) Process II (in RO) Process III (in RO) Raw Materials 50,000 30,000 20,000 Wages 30,000 25,000 25,000 Direct Expenses 7,000 3,000 5,000 Overhead expenses were RO 12,000 and it should be apportioned on the basis of wages.