Questions from various modules

Question 1

Trotter Co. is a manufacturer of processed goods. In March 20X3, in one process, there was no opening inventory, but 5000 units of input were introduced to the process during the month, at the following cost:

Direct materials = $16560
Direct labour = $7360
Production overhead = $5520

Of the 5000 units introduced, 4000 were completely finished during the month and transferred to the next process. Closing inventory of 1000 units was only 60% complete with respect to materials and conversion costs.

Determine the breakdown of closing inventory in the process account.

Answer 1

Output to next process = 4000 units / $25,600;
Closing inventory c/f = 1000 units / $3840
Total = 5,000 units / $29,440

Question 3

The following data have been collected for a process:

Opening inventory = 0
Input units = 2800 units
Cost of input = $16,695
Normal loss = 10%; nil scrap value
Output to finished goods = 2000 units
Closing inventory = 450 units, 70% complete
Total loss = 350 units

Prepare the process account for the period.

Answer 3

PROCESS ACC - Left hand side

Opening inventory = - / -
Input costs = 2800 units / $16,695

PROCESS ACC - Right hand side

Normal loss = 280 units / $0
Finished goods a/c = 2000 units / $14,000
Abnormal loss a/c = 70 units / $490
Closing inventory c/f = 450 units / $2,205

Total = 2800 units / $16,695

Question 4

Twist and Tern Co. is a company that carries out contracting work. One of the jobs carried out in February was job 1357, to which the following information relates:

Direct material Y: 400kg were issued from stores at a cost of $5/kg
Direct material Z: 800kg were issued from stores at a cost of $6/kg. 60kg were returned.
Department P: 320 labour hours were worked, of which 100 hours were done as overtime.
Department Q: 200 labour hours were worked, of which 100 hours were done as overtime.

Overtime work is not normal in department P, where basic pay is $8 per hr plus an overtime premium of $2 per hour. Overtime work was done in department Q in February because of a request by the customer of another job to complete that job quickly. Basic pay in department Q is $10 per hr and the overtime premium is $3 per hour.

What is the:
a) Direct material cost
b) Direct labour cost
c) The full production cost

of the job.

Answer 4

a) $6440;
b) $4560;
c) $12560;

Question 5

Job costing worked example P135 of study guide

Answer 5

See textbook

Question 6

A company produces a certain food item in a manufacturing process. On 1 November, there was no opening inventory of work in process. During November, 500 units of material were input to the process, with a cost of $9,000. Direct labour costs in November were $3840. Production overhead is absorbed at the rate of 200% of direct labour costs. Closing inventory on 30 November consisted of 100 units which were 100% complete as to materials and 80% complete as to labour and overhead. There was no loss in process.

a) The full production cost of completed units during November was?

b) The value of the closing work in process on 30 November was?

Answer 6

a) $42 * 400units = $16,800
b) $3,720

Question 7

Scrap and abnormal loss or gain example on page 128

Answer 7

See textbook

Question 8

Abnormal loss and gain example P125 of study guide

Answer 8

See textbook