S Industrial Limited hasthe following informationrelating to one of itsproduction processes for the month of...
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Accounting
S Industrial Limited hasthe following informationrelating to one of itsproduction processes for the month of March 2023:
(1) Opening work in progress was 2,000 units at K24,800 and its breakdown was:
Degree of
Completion K
Materials input 100% 12,000
Labour 40% 10,000
Overheads 30% 2,800
24,800
(2) Costs incurred during the period were:
Materials input 10,000 units at K72,500
Labour K36,000
Overheads K25,800
(3) Closing work in process were 3,000 units and their degree of completion of
Individual components were:
Materials input 100%
Direct labour 60%
Overheads 40%
(4) Normal loss was 10% of the materials input during current period. The scrap value
of loss was K5 per unit. 1,200 units were actually scrapped during the month. It is the company's cost accounting policy to deduct the scrap value of normal loss from
the cost of materials input in the current process.
REQUIRED:
(a) Prepare the following accounts for the month of March 2023 using the first in
first out method
Process account (15 marks)
Abnormal loss account ( 5 marks)
S Industrial Limited hasthe following informationrelating to one of itsproduction processes for the month of March 2023:
(1) Opening work in progress was 2,000 units at K24,800 and its breakdown was:
Degree of
Completion K
Materials input 100% 12,000
Labour 40% 10,000
Overheads 30% 2,800
24,800
(2) Costs incurred during the period were:
Materials input 10,000 units at K72,500
Labour K36,000
Overheads K25,800
(3) Closing work in process were 3,000 units and their degree of completion of
Individual components were:
Materials input 100%
Direct labour 60%
Overheads 40%
(4) Normal loss was 10% of the materials input during current period. The scrap value
of loss was K5 per unit. 1,200 units were actually scrapped during the month. It is the company's cost accounting policy to deduct the scrap value of normal loss from
the cost of materials input in the current process.
REQUIRED:
(a) Prepare the following accounts for the month of March 2023 using the first in
first out method
Process account (15 marks)
Abnormal loss account ( 5 marks)
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