Process costing 2

This topic has 6 replies, 5 voices, and was last updated 13 years ago by Anonymous.

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October 30, 2010 at 11:57 pm #45736
kpalmer26
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A product is manufactured in two processes.Details for the seconds process in period 4 were as followed:
Opening work in progress nil
materials transferred from the first process 4000 litres
Output transferred to finished goods 2900 litres
Closing work -in-progress 800 litres
normal loss is 5%.Losses have no scrap value
Closing work in progress is 100% complete for material and 60% complete for labour and overheads.
The cost per unit equivalent has been calculated at $3.32 per litre for materials and $2.20 per litres for labour and overhead.
the equivalent units of output for labour and overheads for the period were :
A 2900 Litres
B 3440 Litres
C 3480 litres
D 3800 litres
im just not not getting this .please help!
November 6, 2010 at 4:45 pm #69930
Anonymous
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I believe this question does not include the correct option or it could be wrongly framed up.
The Answer should be 3,380.
November 6, 2010 at 5:18 pm #69931
Anonymous
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when you add 60% of 800 t0 2900 you get 3380 which is the answer.
Do not worry if you get this same answer of mine as there are a few topographical errors in bpp questions.
Wish you well in your studies
December 6, 2010 at 6:26 am #69933
vrushali
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hi,
according to me,
finished output -2900
cwip -480
abnormal loss -100
total -3480
December 8, 2010 at 5:49 pm #69934
littlestart
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I got 3480 as well. Agreed with Vrushali
December 25, 2010 at 9:14 am #69936
Anonymous
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[ol][li][center][/ol][ol]The easy way to under process costing:
unit $ unit $
Input: 4000 Output: 2900
labor Nil Normal loss: 200
FOH Nil (2%*4000)
WIP: 800
Abnormal loss: 100
Total units: 4000 (Must b = to Input units)
Now Calculate equivalent Units:
Material Labor & FOH
Complete units(output): 2900 2900
Normal Loss: – –
WIP: 800 480 (60%*800)
Abnormal loss: 100 100
Total eq units: 3800 3480 (Answer)[code][ol][li]
[/ol][ol]The easy way to under process costing:
unit $ unit $
Input: 4000 Output: 2900
labor Nil Normal loss: 200
FOH Nil (2%*4000)
WIP: 800
Abnormal loss: 100
Total units: 4000 (Must b = to Input units)
Now Calculate equivalent Units:
Material Labor & FOH
Complete units(output): 2900 2900
Normal Loss: – –
WIP: 800 480 (60%*800)
Abnormal loss: 100 100
Total eq units: 3800 3480 (Answer)
December 25, 2010 at 9:16 am #69937
Anonymous
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yea 3480
2900+480(w)+100
W=(60%*800)
100 is abnormal loss
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