Sparkling Beverages makes one of its products by way of three separate stages. Details of production for the month ending 31st January were as follows:
Process |
|||
Fermenting |
Distilling |
Bottling |
|
Input material: 65,000 litres |
$780,000 |
- |
- |
Material added |
- |
$89,000 |
- |
Direct Labour cost |
$114,600 |
$153,500 |
$225,600 |
Manufacturing Overhead |
$122,000 |
$126,000 |
$193,100 |
Normal losses |
8% |
5% |
5% |
Output |
55,000 litres |
53,000 litres |
48,000 litres |
Scrap value of losses |
- |
$18.00/litre |
$30.00/litre |
The nature of the process requires equipment to be cleaned at the end of each month; hence there is no opening or closing stock of product in process.
Required:
i) The process account for each process: and
ii) The abnormal loss/gain account(s) showing Sparkling Beverages true loss/gain.
Sparkling Beverages makes one of its products by way of three separate stages. Details of production...