Answer to Question #301235 in Financial Math for schreiber

Question

The manufacturer of product Gero requires three distinct processes A-C. On completion the product was passed from process C to finished goods stock. The following information was obtained in respect of the product

5,000 units of raw materials at ksh 250 were issued to process A and other costs incurred are given below

ELEMENT OF COST

PROCESS

TOTAL

A

B

C

Kshs

kshs

kshs

Kshs

Direct materials

5,000

12,000

18,000

35,000

Direct labour

30,000

20,000

10,000

60,000

Direct expenses

2,800

5,200

2,000

10,000

Production overheads

-

-

-

90,000

Production overhead is absorbed by each process at 100% of direct labour

You are required to prepare the process accounts

Answer 1

The answer to your question is provided in the image: