Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Elements of cost Cost (Rs.) Equivalent Production (units) 3640 Cost per completed unit 7280 Materials Labour Overheads 10680 7120 3560 3560 2.00 3.00 2.00 25080

image text in transcribed

Elements of cost Cost (Rs.) Equivalent Production (units) 3640 Cost per completed unit 7280 Materials Labour Overheads 10680 7120 3560 3560 2.00 3.00 2.00 25080 7.00 Statement of Evaluation 21000 Finished goods 3000x 7 Work-in-progress: Materials 640x2 Labour 560x3 Overhead 560x2 1280 1680 1120 $ 54 4080 Process A Ale Units Rs. 3800 7280 By Finished stock Alc Units Rs. To Materials To Labour To Overhead 10680 transfer 3000 21000 7120 By Work-in-progress 4080 800 3800 25080 3800 25080 II. When there is only closing work-in-progress but with process losses In case of normal loss, nothing should be added as equivalent production. However, abnormal loss should be considered as production of good units completed during the period. Illustration 8: During January 2000 units were introduced into Process I. the normal loss was estimated at 5% on input. At the end of the month, 1400 units had been produce and transferred to the next process, 460 units were uncompleted and 140 units had been scrapped. It was estimated that uncompleted units had reached a stage in production as follows: Material 75% completed Labour 50% completed Overheads 50% completed The cost of 20000 units was Rs.5800 Direct material introduced during the process Rs.1440 Direct wages Rs.3340 Production overheads incurred were Rs. 1670 Units scrapped realized Re. 1 each. Units scrapped passed through the process, so were 100% completed as regards material, labour and overhead. Find out Equivalent Production, Cost per unit and prepare the necessary accounts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Financial Accounting

Authors: Christopher D. Burnley

3rd Canadian Edition

1119715474, 9781119715474

More Books

Students also viewed these Accounting questions