Reference no: EM133027930

Question - Mr. Bean's chocolate Wiggly bars pass through two processes. The data for the month just ended are: Cost Item

Kg $ Cost Item $

Process 1 Ingredients 4,000 5,000

Process 2 Packaging 10,000

Labour 4,000

Labour 6,000

Overheads 2,000

Overheads 3,000

Mr. Bean allows the staff to eat 5% of the chocolate as they work on Process 1. There was no work in progress at the month end.

Required -

a) Prepare the two process accounts and calculate the cost per kg.

b) Prepare a finished goods account for Mr. Bean's chocolate Wiggly bars.

c) How would Mr. Bean benefit while using process costing?