Eton Ltd. operates a manufacturing process that produces product A. Information for this process last month is as follows:(a) Opening work in progress - 2,500 kg valued at £2,000 for direct material and £1,500 for labour and overheads.(b) Materials input - 25,000 kg at £2.10 per kg.(c) Labour - £10,000(d) Overheads - £5,000(e) Output during the month - 20,000 kg.(f) There were 7,500 units of closing work in progress which was complete as to materials and 30% complete as to conversion.(g) Normal loss for the month was 3% of input and all losses have a scrap value of £1 per kg.What was the average cost per kg of finished output during the month?
Answer(s): C
Refer to the Exhibit.Fabex Ltd manufactures a household detergent called "Clear". The standard data for one of the chemicals used in production (chemical XTC) is as follows:(a) 50 litres used per 100 litres of 'Clear' produced(b) Budgeted monthly production is 1000 litres of 'Clear'.The closing inventory of chemical XTC for November valued at standard price was as follows:Actual results for the period during December were as follows:(a) 500 litres of chemical XTC was purchased for £1300.(b) 550 litres of chemical XTC was used.(c) 900 litres of 'Clear' was produced.It is company policy to extract the material price variance at the time of purchase.What is the total direct material price variance (to the nearest whole number)?
Answer(s): A
In the process account, the accounting treatment of the value of the abnormal gain is:
Answer(s): B
CORRECT TEXT Each unit of product GM requires 4 labour hours to be produced. 25% of the units will be completed during overtime hours.Sales of 24,000 units are planned and finished goods inventory is budgeted to rise by 2,000 units.If the wage rate is £6 per hour and the overtime premium is 50%, what is the budgeted labour cost?
Refer to the exhibit.T operates a process costing system. Data is available for Process A for the month of July.Inputs for the month:Normal losses are 15% of input and can be sold for $6 per kg. Actual output was 2,600 kg. There is no opening or closing work in progress for the period.What is the value of the output from the process in the month?
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