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
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Process II
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Process III
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Total
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Basic raw material (10,000 units)
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$6,000
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-
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-
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$6,000
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|
Direct raw material added in process
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$8,500
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$9,500
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$5,500
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$23,500
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|
Direct wages
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$4,000
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$6,000
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$12,000
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$22,000
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Direct expenses
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$1,200
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$930
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$1,340
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$3,470
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|
Production overhead
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-
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-
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-
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$16,500
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Output (in Units)
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9,200
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8,700
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7,900
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|
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Normal loss in process of input (per cent)
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10%
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5%
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10%
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|
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Scrap value sales per unit
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$0.20
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$0.50
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$1.00
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|
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.