Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 2 A company manufacture it main product in two different consecutive processes, process 1 and process 2. The output from process 1 is transferred
QUESTION 2 A company manufacture it main product in two different consecutive processes, process 1 and process 2. The output from process 1 is transferred to process 2 the output of process 2 is sent to the packaging department . Information for the week ended 31 August 2009 is as follows; Process 1 Input Material X 18,00kg @ GH1 per kg Material Y 12,000 kg @ GH2 per kg Labour 1,720 hours @ GHC3 per hour Normal loss 5% of input Sales price of scrap GH0.32 per kg Output 27,000 kg There was no opening stock but 600 kg of closing work in progress in process 1 at the end of the week which is estimated to be 60% complete with regard to conversion cost. Process 2 Input Material P 19,800 kg @ GH2.5 per kg Material Y 12,600 kg @ GH1.5 per kg Additives GHC1,800 Labour 1,480 hours @ GH3 per hour Normal loss 5% of input Output 56.000 kg There was no opening WIP but there 3,000 kg in process 2 at the end of the week which is estimated to be 50% complete with regard to labour and overheads. Total overheads of GH19,200 was charged to the process and was absorbed on the basis of labour hours. Losses are detected in both processes when it is 75% complete. Required Prepare the following accounts for the week just ended 1. Process 1 and process 2 account [8 Marks] ii ii. Abnormal loss and / or gain account [4 Marks] iii. Scrap account [3 Marks] 1 11
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started