Abnormal loss account and abnormal gain account, Cost Accounting

A product is manufactured by passing through three processes: A, B and C. In process C a by-product is also produced which is then transferred to process D where it is completed. For the first week in October, actual data included:

 

Process

A

Process

B

Process

C

Process

D

Normal loss of input (%)

5

10

5

10

Scrap value ($ per unit)

1.50

2.00

4.00

2.00

Estimated sales value of by-product ($ per unit)

-

-

8.00

-

Output (units)

5,760

5,100

4,370

-

Output of by-product (units)

-

-

510

450

 

 

 

 

 

 

$

$

$

$

Direct materials (6,000 units)

12,000

 

 

 

Direct materials added in process

5,000

9,000

4,000

220

Direct wages

4,000

6,000

2,000

200

Direct expenses

800

1,680

2,260

151

You are required to prepare:

(a)   Accounts for process A, B, C and D

(b)   Abnormal loss account and abnormal gain account

Note: Assume that overheads are to be absorbed using the direct wages percentage method.

Posted Date: 2/26/2013 7:21:05 AM | Location : United States







Related Discussions:- Abnormal loss account and abnormal gain account, Assignment Help, Ask Question on Abnormal loss account and abnormal gain account, Get Answer, Expert's Help, Abnormal loss account and abnormal gain account Discussions

Write discussion on Abnormal loss account and abnormal gain account
Your posts are moderated
Related Questions
Harriet Ltd is a trading company set up a number of years ago with 5,000 £1ordinary shares issued at par. In order to expand the production facilities it needs to raise a further £


A 1- year Canadian bond with a face value of 5000 can be purchased at 4800. a) Calculate the nominal interest rate in Canada. b) if the Canadian dollar is expected to depreci

What are the reasons of preparing income statement?

Q. What is the amount of compensation expense recognized for stock options for each year of the vesting period, given the following information?  A firm awards stock options at-

Example of Job Order Costing The given transactions were made by a company in the month of December. Direct Materials a) 8,000/- was bought on credit, out of these

Determine Inventory Costs Mary Cosmetics sells specialty lipstick for a retail price of $12.25 each. Mary purchases each tube for $5.00 and pays the following additional amounts: $

1) A) In a competitive market place (pure competition) is it possible to continually sell your product at a price above the average cost of production?  Why or why not? B) Why d

A company is investigating the effect on its cost of capital with respect to the tax rate. Suppose there is a capital structure of 20% debt, 10% preferred stock, and 70% common sto

Gomez incurred $350,000 of research and development costs to develop a product for which a patent was granted on January 2, 2008. Legal fees and other costs associated with the re