Question
Prepare the cost the reconciliation statement for the question below: Ltdmanufacturesarangeofproductsandthedatabelowrefertooneproductwhichgoesthroughoneprocessonly.Thecompanyoperatesa13four-weeklyreportingsystemforprocessandproductscostsandthedatagivenbelowrelatetoPeriod10. TherewasnoopeningWIPstock. 5,000unitsofmaterialsinputat2.94perunitenteredtheprocess. Furtherdirectmaterialsadded13830 Directwagesincurred 6555 Productionoverhead 7470 Normallossis3%ofinput. ClosingWIPwas800unitsbutthesewereincomplete,havingreachedthefollowingpercentagesofcompletionforeachoftheelementsofcostlisted: Furtherdirectmaterialsadded75 % Directwagesincurred50 % Productionoverhead25
Prepare the cost the reconciliation statement for the question below:
Ltdmanufacturesarangeofproductsandthedatabelowrefertooneproductwhichgoesthroughoneprocessonly.Thecompanyoperatesa13four-weeklyreportingsystemforprocessandproductscostsandthedatagivenbelowrelatetoPeriod10.
TherewasnoopeningWIPstock.
5,000unitsofmaterialsinputat2.94perunitenteredtheprocess.
Furtherdirectmaterialsadded13830
Directwagesincurred 6555
Productionoverhead 7470
Normallossis3%ofinput.
ClosingWIPwas800unitsbutthesewereincomplete,havingreachedthefollowingpercentagesofcompletionforeachoftheelementsofcostlisted:
Furtherdirectmaterialsadded75 %
Directwagesincurred50 %
Productionoverhead25 %
270unitswerescrappedafteraqualitycontrolcheckwhentheunitswereatthefollowingdegreesofcompletion.
Furtherdirectmaterialsadded66 2/3 %
Directwagesincurred33 1/3 %
Productionoverhead16 2/3 %
Unitsscrapped,regardlessofthedegreeofcompletion,aresoldfor1eachanditis company policytocredittheprocessaccountwiththescrapvalueofnormallossunits.
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
