The following information is required for sub-questions

(a) to (c).

The incomplete process account relating to period 4 for a company which manufactures paper is shown below:

Losses are recognized at the end of the production process and are sold for $1.75 per unit.

(a) Given the outcome of the process, which ONE of the following accounting entries is needed to complete the double entry to the process account?

(b) The value of the closing WIP was:
(i) $3868 (ii) $4158 (iii) $4678 (iv) $5288

(c) The total value of the units transferred to finished goods was:
(i) $21052.50 (ii) $21587.50 (iii) $22122.50 (iv) $22656.50 (3 marks)
CIMA — Management Accounting Fundamentals

Transcribed Image Text:

Process account Units Units ($) Material 4000 Labour 16000 Finished goods 8125 Normal loss 2750 400 700 Production overhead 3498 Work in progress 700 There was no opening work in process (WIP). Closing WIP, consisting of 700 units, was complete as shown: Material Labour 100% 50% Production overhead 40%