Cepat Sdn. Bhd. (CSB) produces a liquid fertiliser for local farmers. The fertiliser is made in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cepat Sdn. Bhd. (CSB) produces a liquid fertiliser for local farmers. The fertiliser is made in two consecutive production processes. The cost accountant has provided the following information for the coming month. There were no opening or closing inventories at the beginning and end of either process. All losses are sold to a reprocessing company. Direct materials (15,000 litres) Direct labour Production overheads Scrap value of losses per litre Output in litre Normal loss as % of total inputs Required: (a) (b) (c) Prepare the following accounts: (i) Filtering RM 15,000 4,000 1,370 0.80 (ii) 13,000 7% Packaging RM NIL 5,000 3,476 0.90 the Filtering process account; (6 marks) the Packaging process account; (6 marks) (iii) the normal loss account. (5 marks) Explain ANY TWO (2) reasons why job costing is an inappropriate costing method for Cepat Sdn. Bhd. (2 marks) 12,500 4% Explain TWO (2) challenges that Cepat Sdn Bhd. will face when the process costing method is used to determine the output cost of the liquid fertilizer. (6 marks) [Total: 25 marks] Cepat Sdn. Bhd. (CSB) produces a liquid fertiliser for local farmers. The fertiliser is made in two consecutive production processes. The cost accountant has provided the following information for the coming month. There were no opening or closing inventories at the beginning and end of either process. All losses are sold to a reprocessing company. Direct materials (15,000 litres) Direct labour Production overheads Scrap value of losses per litre Output in litre Normal loss as % of total inputs Required: (a) (b) (c) Prepare the following accounts: (i) Filtering RM 15,000 4,000 1,370 0.80 (ii) 13,000 7% Packaging RM NIL 5,000 3,476 0.90 the Filtering process account; (6 marks) the Packaging process account; (6 marks) (iii) the normal loss account. (5 marks) Explain ANY TWO (2) reasons why job costing is an inappropriate costing method for Cepat Sdn. Bhd. (2 marks) 12,500 4% Explain TWO (2) challenges that Cepat Sdn Bhd. will face when the process costing method is used to determine the output cost of the liquid fertilizer. (6 marks) [Total: 25 marks]
Expert Answer:
Related Book For
Focus on Personal Finance
ISBN: 978-0077861742
5th edition
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
Posted Date:
Students also viewed these accounting questions
-
Jamie Lee and Ross need to evaluate their emergency fund of $21,000. Will their present emergency fund be sufficient to cover them should one of them lose their job? Show the equation for calculating...
-
1. As Jamie Lee and Ross review their assets, can you tell them which will be valuable to them for income as retirement approaches? 2. Jamie Lee and Ross estimate that they will have one million...
-
1. It has been suggested by Jamie Lee and Ross professional investment counselor to perform a financial check-up as the first step in investing in mutual funds, even though they are investing $50,000...
-
Determine the void ratio of a soil if its bulk density is 2.06 g/cc and it has a moisture content of 24 percent. The specific gravity of the soil particles is 2.75. Also, determine its dry density...
-
"It's true that unexpected inflation redistributes wealth, from creditors to debtors, for example. But what one side of the bargain loses, the other side gains. So from the perspective of the society...
-
By using an MO approach, rationalize why, in going from NO to [NO] + , the bond order increases, bond distance decreases and NO vibrational wavenumber increases.
-
How to obtain an extension of time and continuances?
-
Cortez Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales. Instructions(a) Determine the ending inventory under a...
-
Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) Useful life Salvage value...
-
Slopes Inc. manufactures and sells snowboards. Slopes manufactures a single model, the Pipex. In the summer of 2015, Slopes's accountant gathered the following data to prepare budgets for 2016. These...
-
4. (25) One of the key provisions of the Affordable Care Act was the ensuring coverage for "pre- existing conditions," which had formerly been excluded from insurance plans as people with known...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. A specifi c oral promise made by a seller is an implied warranty.
-
An agreement between a principal and an agent in which the agent is vested with authority to represent the principal. a. agent b. agency by necessity c. agency by ratifi cation d. apparent a uthority...
-
How does EVA differ from accounting profit?
-
The party in an agency contract who delegates power to another. a. agent b. agency by necessity c. agency by ratifi cation d. apparent a uthority e. attorney in fact f. express a uthority g. contract...
-
The name given to a legal document that formally creates an agency. a. agent b. agency by necessity c. agency by ratifi cation d. apparent a uthority e. attorney in fact f. express a uthority g....
-
What are the potential downsides of authoritarian, democratic, and laissez-faire styles of leadership? When is laissez-faire leadership appropriate? Why? What style of leadership (authoritarian,...
-
$10,000 was borrowed at 3.5% on July 17. The borrower repaid $5000 on August 12, and $2000 on September 18. What final payment is required on November 12 to fully repay the loan?
-
Give an example of each kind of riskpersonal, property, and liability.
-
Examine a homeowners or renters insurance policy. What coverage does the policy include? Does the policy contain unclear conditions or wording?
-
Using the tax table on page 81, determine the amount of taxes for the following situations: a. A head of household with taxable income of $55,000. b. A single person with taxable income of $35,000....
-
In order to have a correlation coefficient between traits A and B, it is necessary to have: a. one group of subjects, some of whom possess characteristics of trait A, the remainder possessing those...
-
What would you guess the value of the correlation coefficient to be for the pair of variables: "number of man-hours worked" and "number of units of work completed"? a. Approximately 0.9 b....
-
True or False: Whenever r is calculated on the basis of a sample, the value which we obtain for r is only an estimate of the true correlation coefficient which we would obtain if we calculated it for...
Study smarter with the SolutionInn App