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A firm makes special assemblies to customers’ orders and uses job costing.
The data for a period are:
Job number Job number Job number
AA10 BB15 CC20
$ $ $
Opening WIP 26,800 42,790 0
Material added in period 17,275 0 18,500
Labour for period 14,500 3,500 24,600The budgeted overheads for the period were $126,000.
Job number BB15 was completed on the last day of the period.What overhead should be added to job number CC20 for the period?
A company operates a process costing system. The following information is relevant for the last period for process 1:
Input: 12000 kg of raw material at $4 per kg.
Direct wages:6000 hours at $5 per hour.
Production overhead absorbed at $7 per labour hour.
Outputs: Normal loss is 10% of input
Transfer to process 2: 11050 kg
All losses have a scrap value of $1 per kg. There was no opening or closing inventory or work-in-progress.
Required:
a) The abnormal gain or loss for period was:
A. 108 kg loss
B. 250 kg gain
C. 950 kg gain
D. 1000 kg gainb) The cost per kg of output is:
A. $10
B. $11
C. $12
D. $13
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