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  • Assignment Maf201

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    miyrasally
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    This document contains information about the production and costs of joint products X and Y. It shows: 1) The production process had 70,500 total units going in with 25,000 units of product X and 20,000 units of product Y produced. 2) Total production costs were Rs. 690,840 to produce the joint products. This cost was allocated to X and Y based on their output ratios. 3) Product X sold for Rs. 50 per unit and Y for Rs. 45 per unit. Product X made a profit of Rs. 971,281 and Y made a profit of Rs. 677,024. 4) By-products and normal losses were also accounted for separately

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    Process costing

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    This document contains information about the production and costs of joint products X and Y. It shows: 1) The production process had 70,500 total units going in with 25,000 units of product X and 20,000 units of product Y produced. 2) Total production costs were Rs. 690,840 to produce the joint products. This cost was allocated to X and Y based on their output ratios. 3) Product X sold for Rs. 50 per unit and Y for Rs. 45 per unit. Product X made a profit of Rs. 971,281 and Y made a profit of Rs. 677,024. 4) By-products and normal losses were also accounted for separately

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    © All Rights Reserved
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    920 views7 pages

    Assignment Maf201

    Uploaded by

    miyrasally
    This document contains information about the production and costs of joint products X and Y. It shows: 1) The production process had 70,500 total units going in with 25,000 units of product X and 20,000 units of product Y produced. 2) Total production costs were Rs. 690,840 to produce the joint products. This cost was allocated to X and Y based on their output ratios. 3) Product X sold for Rs. 50 per unit and Y for Rs. 45 per unit. Product X made a profit of Rs. 971,281 and Y made a profit of Rs. 677,024. 4) By-products and normal losses were also accounted for separately

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 7

    QUESTION 2

    a)

    Statement of Equivalent Units


    Input
    Output

    Trans-in
    Units
    OWIP: 5,000
    OWIP: 5,000
    0
    Trans-in: 55,000
    CP: 45,000
    100
    45,000
    Material added: 10,500 CWIP: 15,500 100
    15,500
    NL: 3,525
    100
    3,525
    AL: 1,475
    100
    1,475
    70,500
    70,500
    65,500
    %

    NL = 0.05 x 70,500 units = 3,525 units


    CP = 50,000 - 5,000 = 45,000 units

    Material added
    Conversion costs
    Units
    %
    Units
    50
    2,500
    40
    2,000
    100
    45,000 100
    45,000
    80
    12,400
    60
    9,300
    100
    3,525 100
    3,525
    100
    1,475 100
    1,475
    64,900
    61,300

    Statement of Cost and Evaluation


    Cost
    Cost incurred
    Total EQ units
    Cost per EQ units

    Trans-in
    RM445,400
    65,500 units
    RM6.80

    Material added
    RM90,860
    64,900 units
    RM1.40

    Conversion costs
    RM98,080
    61,300 units
    RM1.60

    Total

    RM9.80

    OWIP b/d

    RM56,500

    Current OWIP

    2,500x1.40 = RM3,500

    2,000x1.60 = RM3,200

    RM6,700

    45,000x6.80 = RM306,000

    45,000x1.40 = RM63,000

    3,525x6.80 = RM23,970

    3,525x1.40 = RM4,935

    Evaluation:
    i- Finished goods

    CP
    Net NL
    NL-NLSV
    RM34,545 - RM7,050
    RM27,495

    45,000x1.60 = RM72,000 RM441,000


    3,525x1.60 = RM5,640

    TOTAL
    ii- CWIP
    iii- AL

    RM27,495

    RM531,695
    15,500x6.80 = RM105,400

    12,400x1.40 = RM17,360

    9,300x1.60 = RM14,880

    RM137,640

    1,475x6.80 = RM10,030

    1,475x1.40 = RM2,065

    1,475x1.60 = RM2,360

    RM14,455

    OWIP
    Trans-in
    Material added
    Conversion costs

    Units
    5,000
    55,000
    10,500

    70,500

    Process 2 Account
    Total (RM)
    56,500 Completed products:
    445,400
    X
    90,860
    Y
    98,080
    Z
    NL
    CWIP
    AL
    690,840

    Cost of production (joint costs) of joint products:

    Total process cost


    (-) Sales income of by-products
    [(5,000xRM8) - (5,000xRM2)]

    RM
    531,695
    (30,000)
    501,695

    ccount
    Units

    Total (RM)

    25,000
    20,000
    5,000
    3,525
    15,500
    1,475

    278,719
    222,976
    30,000
    7,050
    137,640
    14,455

    70,500

    690,840

    Cost Statement
    Product
    Quantity
    X
    25000
    Y

    20000

    TOTAL

    45000

    Profit Statement
    Product
    Sales value (a)
    X
    25,000xRM50
    RM1,250,000
    Y
    20,000xRM45
    RM900,000

    Apportionment ratio
    (25000/45000) x 501695

    Apportionment joint cost


    RM278,719

    (20000/45000) x 501695

    RM222,976
    RM501,695

    Total cost (b)


    RM278,719

    Profit/Loss (b-a)
    RM971,281

    RM222,976

    RM677,024

    b)

    Normal Loss Account


    Units
    CPU (RM) Total (RM)
    Units
    CPU (RM)
    Process 2 a/c
    3,525
    2
    7,050 Cash sales
    3,525
    2
    3,525

    c)
    Process 2 a/c

    Units
    1,475

    1,475

    7,050

    3,525

    Abnormal Loss Account


    Total (RM)
    Units
    CPU (RM)
    14,455 Cash sales
    1,475
    2
    SOPL
    14,455

    1,475

    Total (RM)
    7,050
    7,050

    Total (RM)
    2,950
    11,505
    14,455

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