Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question one a chemical manufacturing company oper

Question one A chemical manufacturing company operates a processing system to produce a chemical branded...

60.1K

Verified Solution

Question

Accounting

image
image
Question one A chemical manufacturing company operates a processing system to produce a chemical branded 'oil which passes through three production processes. The following information relates to the production of chemical oil: 1. In the month of November 2020, 8,000 litres of basic raw materials at accost of $640,000 were introduced into process 1. 2. The following costs were incurred during the production period: Process 1 $ Materials (Added) Direct Labour Direct Expenses 2 $ 220,000 150,000 50,000 3 $ 180,000 100,000 20,000 350,000 90,000 3. The output, normal process losses and scrap value for losses for each process were as follows: Process Output Normal Scrap (Litres) loss(%) value (5) 1 7,000 8 5 2 6.900 5 10 3 6,603 3 12 4. Manufacturing overheads are absorbed into each process at a rate of 20% of direct labour cost 5 The output of each process passes directly to the next process at cost without any provision for internal profit 6. There were no stocks of raw materials or work in progress at the beginning or at the end of the production period, TOSHIBA Required: (0) Process 1,2,&3 accounts () Abnormal gain and abnormal loss accounts ( 9 Marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students