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Question Six Adem Plc is a manufacturer of 'Good Drive' an industrial lubricant, which is formed by subjecting certain crude chemicals to two successive processes.
Question Six Adem Plc is a manufacturer of 'Good Drive' an industrial lubricant, which is formed by subjecting certain crude chemicals to two successive processes. The output of process is passed to process where it is blended with other chemicals. The process costs for the month ended December were as follows: Process Material: kilogram at a cost of per kilogram. Labour cost: GH Process plant time: hours at a cost of GH& per hour. Output: kilogram. Normal loss: of input. Scrap value of the normal loss: GH per kilogram. Process Material: kilogram at a cost of GH per kilogram. Labour cost: GH& Process plant time: hours at a cost of per hour. Output: kilogram. Normal loss: of input. Note: Scrap value of the normal loss: GH& per kilogram. i General overhead for the month amounted to GH& and is absorbed into process costs on a process labour basis. ii There was no stock or work in progress at either the beginning or the end of the period, and it may be assumed that all available normal losses had been sold at the prices indicated. Required; prepare for the month ended December a Process account b Process account d Normal loss account e Abnormal loss account f Abnormal gain account TOTAL MARKS
Question Six
Adem Plc is a manufacturer of 'Good Drive' an industrial lubricant, which is formed by subjecting certain crude chemicals to two successive processes. The output of process is passed to process where it is blended with other chemicals. The process costs for the month ended December were as follows:
Process
Material: kilogram at a cost of per kilogram.
Labour cost: GH
Process plant time: hours at a cost of GH& per hour.
Output: kilogram.
Normal loss: of input.
Scrap value of the normal loss: GH per kilogram.
Process
Material: kilogram at a cost of GH per kilogram.
Labour cost: GH&
Process plant time: hours at a cost of per hour.
Output: kilogram.
Normal loss: of input.
Note:
Scrap value of the normal loss: GH& per kilogram.
i General overhead for the month amounted to GH& and is absorbed into process costs on a process labour basis.
ii There was no stock or work in progress at either the beginning or the end of the period, and it may be assumed that all available normal losses had been sold at the
prices indicated.
Required; prepare for the month ended December
a Process account
b Process account
d Normal loss account
e Abnormal loss account
f Abnormal gain account
TOTAL MARKS
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