Page 211 - F2 - MA Integrated Workbook STUDENT 2018-19

Process costing

Test your understanding 2

X plc makes one product, which passes through a single process.

Details of the process are as follows:

Materials: 5,000 kg at $0.50 per kg

Labour: $800

Production overheads: 200% of labour

Normal losses are 20% of input in the process, and without further processing
any losses can be sold as scrap for $0.30 per kg.

The output for the period was 3,800 kg from the process.

There was no work in progress at the beginning or end of the period.

Calculate the following values:

$

The amount to be credited to the process account for the
value of the normal loss is:

The value of the abnormal loss in the process account is:

The value of the completed output is:

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