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Cost and management accountant M.com 2nd Semester (Evening) Class Test Date: 26/12/2011 Time Allowed: 1 hour and 15 minutes Marks: 20
Received from department A Transferred to finished goods Ending inventory (70% complete) Cost incurred: Materials Labor and factory overhead
Dollars $84,000
18,000 45,600
Required: process account Question # 2 During February, the Assembly department received 60,000 units from Cutting department at a unit cost of $3.54. Costs added in the Assembly department were: materials, $41,650; labor, $101,700; and factory overhead. $56,500. There was no beginning inventory. Of the 60,000 units received, 50,000 were transferred out; 9,000 units were in process at the end of the month (all materials, 2/3 converted); 1,000 lost units were 1/2 complete as to materials and conversion costs. The entire loss is considered abnormal and is to be charged to factory overhead. Required: process account and abnormal loss account. Question # 3
A product passes through three processes A, B and C. The normal wastage of each process is as follows: Process A-3%, Process B-5% and Process C-8%. Wastage of Process A was sold at 25 P. per unit that of process B at 50 P per unit and that of Process C at Rs. 1 per unit. 10000 units were introduced to process A in the beginning of October 1997 at a cost of Rs. 1 per unit. The other expenses were as follows:
Sundry Materials Labor Process A Rs. 1,000 5,000 Process B Rs. 1,500 8,000 Process C Rs. 500 6,500
1,050 9,500
Prepare the Process accounts, assuming that there was no opening or closing stock. Also give the abnormal wastage and abnormal Gain Account.
Question # 4
Syed Ltd manufactures and sells three chemicals Produced by consecutive processes known as A.,B and C. In each process 2% of the total weight put in is lost and 10% is scrap, which from Processes A and B realized Rs. 100 a tonne and from C Rs 200 a tonne. The product of the three process are dealt with as follows. A B C Sent to Ware house for Sale Passed on to the Next process Following particulars relate to the month of May: Materials used (tonnes) Cost per tonne of materials (Rs.) Mfg Expenses(Rs.) 20 308 00 25% 75% 50% 50% 100 % __ 10 00 1 0 2576 0 80 18,1 00 14 0 20 1,34 8
Prepare an Account for each process, showing the cost per tonne of each product.