Question

a.Consider the cooking department of AD food ltd :during May 3000 unit valued at 400500 were...

a.Consider the cooking department of AD food ltd :during May 3000 unit valued at 400500 were transferred from process 1 to process 2:other cost incurred during the month were:

Direct material added: $120,000

Direct labour: $130,000

Production overhead $97,000

400 units were scrapped during the period, normal losses were estimated to be 8 1/3 % of the input during the period. The scrap value of any loss is $32.00 per unit.

a i. Calculate the normal loss units and value

b. iiCalculate the abnormal loss/gain units

please provide visible details so that i can eaily follow. if posiible could it be done in a t account settings

Homework Answers

Answer #1

A. Calculation of normal loss units and value

Particulars Amount (in $)
Units transferred 400,500
Direct Material 120,000
Direct labour 130,000
Production overhead 97,000
Total cost for 3000units 747,500

Cost per unit =$747,500/3000=$249.17

Normal loss (in units)= 3000units*8.33%=250units

Normal loss(in $)= $[250units*(249.17-32)]=$54,292.5.

B. Table showing abnormal loss in units

Particulars No of units
Total loss 400
- Normal loss 250
Abnormal loss 150

Therefore the abnormal loss in units is 150.

Abnormal loss (in $)= $[150*(249.17-32)]=$32,575.5

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Majority of this question is already done a -d only need the answer for e.. do...
Majority of this question is already done a -d only need the answer for e.. do only E The MC Company manufactures electric bills. Material is introduces at the beginning of the process in the assembly department. Conversion cost are applied uniformly throughout the process. As the process is completed, goods are immediately transferred to the finishing department. Data for the assembly department for the month of July 2016: Work in process , June 1 $175500(consisting of 138,000 material and...
Caleb Ltd uses a process costing system. during the month they put 640 units of total...
Caleb Ltd uses a process costing system. during the month they put 640 units of total production at a cost of n$27 680. the company has estimated that the normal loss would be 5% with a scrap value of n$10 per unit. during the month 592 goods finished units were actually manufactured. the amount to be transferred to abnormal loss/gain account would be:
1) In August 2000 kg of a material were introduced to a process at a cost...
1) In August 2000 kg of a material were introduced to a process at a cost of RM5/kg, and 200 hours labour were spent at a cost of RM12/hour. Overheads are absorbed at the rate of RM3/labour hour. Normal losses are incurred at the rate of 5% of input and lost units can be sold for RM0.8 per kilogram and 1,700 units were produced. Required (a) Prepare the process account to record the above transactions (b) Determine the value for...
Sweet Harmony Ltd is a sole distributor of a reputable brand of headphones in this region....
Sweet Harmony Ltd is a sole distributor of a reputable brand of headphones in this region. It imports completely knocked down kits (CKD) from an international headphone manufacturer and then assembles and packs these into finished products (earphones) before transferring them to the finished goods store for distributions in the region. The CKD are issued and utilised at the beginning of the assembly process. The other assembly costs are incurred evenly throughout that process. When the assembly process is complete,...
Greenworks, Inc. mass-produces goods in three processes. In the first process, direct materials are added 20%...
Greenworks, Inc. mass-produces goods in three processes. In the first process, direct materials are added 20% of the way through the process, conversion costs are incurred evenly throughout the process, and the normal spoilage rate is 5%. This period, 100,000 units were started in the first process. The 25,000 units in beginning work-in-process inventory (40% complete) were worth $100,000 ($50,000 in conversion costs and $50,000 in direct materials costs). During the period, the first process cost $130,000 for direct materials...
Holistic Path Ltd manufactures the "Super" brand of food supplements which is produced in two separate...
Holistic Path Ltd manufactures the "Super" brand of food supplements which is produced in two separate departments sequentially: Mixing, and Packaging. The output from the Mixing department is transferred to the Packaging department for further processing before the finished products are transferred to the Finished Goods store. The following information of process inputs, outputs and work in process relates to the Packaging department for the month of February 2020: in kg Opening work in process 21,360 Inputs transferred from Mixing...
Please summarize the below article in approximately 100 words: Monumental function in British Neolithic burial practices...
Please summarize the below article in approximately 100 words: Monumental function in British Neolithic burial practices Ian Kinnes The high-risk rate of survival for the non-megalithic series of Neolithic funerary monuments, recently re-emphasized by Piggott (1973: 34), introduces a further variable into the deductive study of burial practices. In Britain and Europe the overall distribution of monumental forms present both lacunae and a marked preponderance of cairns over earthen mounds which are in ill accord with the known or predicted...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT