UNIVERSITY OF THE WEST INDIES
OPEN CAMPUS
ACCT 1003 (MS 15B)
Introduction to Cost & Management Accounting
LEARNING ACTIVITY 5.1
Cutting A/C
$
40,000
15,000
4,000 To Sewing
59,000
Direct Material
Direct Wages
Production O/Hs
$
59,000
59,000
Sewing A/C
$
59,000
5,000
45,000
3,500 To Trimming
112,500
From Cutting A/C
Direct Material
Direct Wages
Production O/Hs
$
112,500
112,500
Trimming A/C
$
112,500
6,000
2,000 To Finished Goods
120,500
From Sewing A/C
Direct Material
Direct Wages
Production O/Hs
$
120,500
120,500
LEARNING ACTIVITY 5.2
Question 2
Input Units
Direct Material
Direct Wages
Units
1,000
Production O/Hs
1,000
CPU
=
=
CPU
Process 1 A/C
$
6,000 Normal Loss
5,200
4,000
4,000 To Process 2
19,200
Units
50
CPU
4.00
950
1,000
20.00
$
200
19,000
19,200
Total Cost - Normal Loss Value
Input Units - Normal Loss Units
$19,200 – 200)
1,000 – 50
= $19,000
950
= $20.00
1
From Process 1
Direct Material
Direct Wages
Units CPU
950 20.00
Production O/Hs
950
cpu
=
$34,960 – 760)
950 – 95
From Process 2
Direct Materials
Direct Labour
= $34,200
855
Units
840
CPU
40.00
840
36
876
76.00
Production O/Hs
Abnormal Gain
cpu. =
Process 2
$(55,524 - 1,260)
840 - 126
Units
15
15
Unrealized Scrap
To P & L A/C
Units
36
36
Process 2 A/C
$
19,000 Normal Loss
3,960 Abnormal Loss
6,000
6,000 To Process 3
34,960
840 40.00
950
$
760
600
33,600
34,960
= $40.00
Process 3 A/C
$
33,600 Normal Loss
5,924
8,000
8,000
55,524
2,736 To Finished Goods
58,260
=$55,264
714
Units
CPU
95
8.00
15 40.00
Units
126
CPU
10.00
$
1,260
750 76.00 57,000
876
58,260
= $76.00
Abnormal Loss A/C
CPU
$
40.00
600 Cash/Scrap Value
P & L A/C
600
Abnormal Gain A/C
CPU
$
10.00
360 Process 3
2,376
2,736
Units
15
CPU
8.00
$
120
480
600
Units
CPU
36 76.00
$
2,736
15
36
2,736
2