Reference no: EM132351103
Assignment - CMAC-Process Costing Math - COSTING METHODS
QUESTION 1: JOB COSTING
A company operates a job costing system. Job number 6789 will require $345 of direct materials and $210 of direct labour, which is paid $14 per hour.
Production overheads are absorbed at the rate of $30 per direct labour hour and non-production overheads are absorbed at the rate of 40% of prime cost.
Required - What is the total expected cost of the job?
QUESTION 2: PROCESS COSTING
XYZ Ltd Chemical Ltd processes a range of products including a detergent, 'Washo', which passes through 3 processes before completion and transfer to the finished goods warehouse. During April, data relating to this product were as follows:
|
Process I
|
Process II
|
Process III
|
Total
|
Basic raw material (10,000 units)
|
$6,000
|
-
|
-
|
$6,000
|
Direct raw material added in process
|
$8,500
|
$9,500
|
$5,500
|
$23,500
|
Direct wages
|
$4,000
|
$6,000
|
$12,000
|
$22,000
|
Direct expenses
|
$1,200
|
$930
|
$1,340
|
$3,470
|
Production overhead
|
-
|
-
|
-
|
$16,500
|
Output (in Units)
|
9,200
|
8,700
|
7,900
|
|
Normal loss in process of input (per cent)
|
10%
|
5%
|
10%
|
|
Scrap value sales per unit
|
$0.20
|
$0.50
|
$1.00
|
|
The production overhead is absorbed as a percentage of direct wages. There was no stock at the start or at the end of any process.
Required: You are required to prepare the following accounts:
i) Process I,
ii) Process II,
iii) Process III,
iv) Abnormal gain/loss.