Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The producers of body lotions manufacture three different types. One with aloe vera, the other cocoa butter and another with mint leaves. Production for

image text in transcribed

The producers of body lotions manufacture three different types. One with aloe vera, the other cocoa butter and another with mint leaves. Production for these products passes through two consecutive processes: Forming and Assembly. The output of the forming process becomes the input for assembly after which it is prepared for the external market. The following data is applicable to the company for the two processes for the year ended 31 December 2021. Forming Assembly Direct Material (18,750 units) Conversion costs $ 894,750 Nil $1,125,000 $2,338,000 Normal loss 4% 6% Scrap value of normal loss Output $5 $20 17,500 Aloe vera: 8,125 Cocoa butter: 6,500 Mint leaf: 1,625 The selling price per unit for each item are as follows: $150, $200, and $450 for aloe vera, cocoa butter and mint leaves respectively. Required: (a) Calculate the cost per unit and the process account for Forming. (8 marks) (b) Prepare the cost per unit and the process account for Assembly using the relative sales value method. (16 marks) (c) Prepare the cost per unit and the process account for Assembly using the units to produce method. (8 marks)

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

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions

Question

What is performance measurement?

Answered: 1 week ago

Question

33. Can MRP and kanban be used at the same time and if so, how?

Answered: 1 week ago

Question

31. Where does a kanban system work best?

Answered: 1 week ago

Question

32. Where does a drum-buffer-rope system work best?

Answered: 1 week ago