A company manufactures three joint products and one by-product from a single process.

Data for May are as follows.

Output

By-product sales revenue is credited to the sales account. Joint costs are apportioned on a sales value basis.

What were the full production costs of product M in May (to the nearest $)?

Which of the following statements is/are correct?

1. A by-product is a product produced at the same time as other products which has a relatively low volume compared with the other products
2. Since a by-product is a saleable item it should be separately costed in the process account, and should absorb some of the process costs
3. Costs incurred prior to the point of separation are known as common or joint costs

A company manufactures two joint products, P and R, in a common process. Data for June are as follows.

If costs are apportioned between joint products on a physical unit basis, what was the total cost of product P production in June?

A company needs to produce 340 litres of Chemical X. There is a normal loss of 10% of the material input into the process. During a given month the company did produce 340 litres of good production, although there was an abnormal loss of 5% of the material input into the process.

How many litres of material were input into the process during the month?

______ litres

A process produces two joint products A and B in equal physical quantities. A and B are sold at split off point for $5 per kg and $8 per kg respectively. There are no further costs after the split off point.

If joint costs are apportioned on a relative sales value basis, which of the following statements is true?

In a particular process, the input for the period was 2,000 units. There were no inventories at the beginning or end of the process. Normal loss is 5% of input.

In which of the following circumstances is there an abnormal gain?

1. Actual output = 1,800 units
2. Actual output = 1,950 units
3. Actual output = 2,000 units

A company manufactures two joint products, P and R, in a common process. Data for June are as follows.

If costs are apportioned between joint products on a sales value basis, what was the cost per unit of product R in June?

The following question is taken from the September to June 2018 exam period.

A process is subject to a normal loss of 12% of input. Losses can be sold for $5 per kg. In the last period 10,000 kg of material costing $100,000 was input to the process. Conversion costs for the period were $50,000 and output was 9,200 kg.

What is the credit to the statement of profit or loss from the abnormal gain account in the last period?

Two joint products A and B are produced in a process. Data for the process for the last period are as follows:

Common production costs in the period were $12,000. There was no opening inventory. Both products had a gross profit margin of 40%. Common production costs were apportioned on a physical basis.

What was the gross profit for product A in the period?

A company produces a certain food item in a manufacturing process. On 1 November, there was no opening inventory of work in process. During November, 500 units of material were input to the process, with a cost of $9,000. Direct labour costs in November were $3,840. Production overhead is absorbed at the rate of 200% of direct labour costs. Closing inventory on 30 November consisted of 100 units which were 100% complete as to materials and 80% complete as to labour and overhead. There was no loss in process.

What is the full production cost of completed units during November?

The following question is taken from the January to June 2015 exam period.

Normally no losses are expected from a process. Any abnormal losses are sold for scrap.

Which of the following calculates the net cost to the company of one unit of abnormal loss?

Which of the following is NOT an acceptable method of accounting for by-products?

In a process account, how are abnormal losses valued?

A chemical process has a normal wastage of 10% of input. In a period, 2,500 kg of material were input and there was an abnormal loss of 75 kg.

What quantity of good production was achieved?

______ kg

A company uses process costing to establish the cost per unit of its output.

The following information was available for the last month:

The company uses the weighted average method of valuing inventory.

What were the equivalent units for conversion costs?

Two products G and H are created from a joint process. G can be sold immediately after split-off. H requires further processing before it is in a saleable condition. There are no opening inventories and no work in progress. The following data are available for last period:

Using the physical unit method for apportioning joint production costs, what was the cost value of the closing inventory of product H for last period?

A company operates a continuous process into which 3,000 units of material costing $9,000 was input in a period. Conversion costs for this period were $11,970 and losses, which have a scrap value of $1.50, are expected at a rate of 10% of input. There were no opening or closing inventories and output for the period was 2,900 units.

What was the output valuation?

A company manufactures Chemical X, in a single process. At the start of the month there was no work-in- progress. During the month 300 litres of raw material were input into the process at a total cost of $6,000. Conversion costs during the month amounted to $4,500. At the end of the month 250 litres of Chemical X  were transferred to finished goods inventory. The remaining work-in-progress was 100% complete with respect to materials and 50% complete with respect to conversion costs. There were no losses in the process and there is no scrap value available during months when losses occur.

What are the equivalent units for closing work-in-progress at the end of the month?

A company makes a product in two processes. The following data is available for the latest period, for process 1.

Opening work in progress of 200 units was valued as follows.

No losses occur in the process.

Units added and costs incurred during the period:

Closing work in progress of 100 units had reached the following degrees of completion:

The company uses the weighted average method of inventory valuation.

How many equivalent units are used when calculating the cost per unit in relation to overhead?

A company manufactures two joint products and one by-product in a single process. Data for November are as follows.

There were no inventories at the beginning or end of the period.

By-product sales revenue is credited to the process account. Joint costs are apportioned on a sales value basis.

What were the full production costs of product Q in November (to the nearest $)?

In a period, a process produced 2,000 kg of a main product and 400 kg of a by-product. The cost of production was $5,000. 1,800 kg of the main product were sold at $10 per kg and all of the by- product produced was sold for $1per kg. There was no opening inventory.

If the sales income of the by-product is deducted from the cost of production, what is the profit for the period?

The following information relates to a company's polishing process for the previous period.

All losses have a scrap value of $2.50 per unit and there was no opening or closing work in progress.

What was the value of the input during the period?

A company produces a certain food item in a manufacturing process. On 1 November, there was no opening inventory of work in process. During November, 500 units of material were input to the process, with a cost of $9,000. Direct labour costs in November were $3,840. Production overhead is absorbed at the rate of 200% of direct labour costs. Closing inventory on 30 November consisted of 100 units which were 100% complete as to materials and 80% complete as to labour and overhead. There was no loss in process.

What is the value of the closing work in progress on 30 November?

A company manufactures Chemical X, in a single process. At the start of the month there was no work-in- progress. During the month 300 litres of raw material were input into the process at a total cost of $6,000. Conversion costs during the month amounted to $4,500. At the end of the month 250 litres of Chemical X  were transferred to finished goods inventory. The remaining work-in-progress was 100% complete with respect to materials and 50% complete with respect to conversion costs. There were no losses in the process and there is no scrap value available during months when losses occur.

If there had been a normal process loss of 10% of input during the month what would the value of this loss have been?

Two products (W and X) are created from a joint process. Both products can be sold immediately after split-off. There are no opening inventories or work in progress. The following information is available for last period:

Using the sales value method of apportioning joint production costs, what was the value of the closing inventory of product X for last period?

A company uses process costing to value its output. The following was recorded for the period:

There were no opening or closing inventories.

What was the valuation of one unit of output to one decimal place?

A company makes a product in two processes. The following data is available for the latest period, for process 1.

Opening work in progress of 200 units was valued as follows.

No losses occur in the process.

Units added and costs incurred during the period:

Closing work in progress of 100 units had reached the following degrees of completion:

The company uses the weighted average method of inventory valuation.

What is the value of the units transferred to process 2?

Which of the following statements about process losses are correct?

1. Units of normal loss should be valued at full cost per unit
2. Units of abnormal loss should be valued at their scrap value