Process costing - Exercise 2

Below are the details for two departments in Proses Kos Sdn Bhd. Currently, the company is manufacturing a sofa set which involving Assembly Department and Painting Department.

	Assembly (P1)	Painting (P2)
Direct material	RM160,000	RM85,000
Direct labour	RM  80,000	RM60,000
Direct expenses	RM  40,000
Overheads	40% of direct labour cost	RM42,000

The input for direct material for Assembly Department (P1) is 4,000 units. Normal loss is expected at 5% of input materials and all scrap can be sold for RM5.00 per unit. At the end the process 3,600 units were transferred to Painting Department.

The work in progress at the beginning of the period is 800 units which cost;

Input materials RM64,000, Added materials RM43,500, Direct labour RM18,640 and overhead RM6,100.

The work in progress at the end of the period is 500 units which consist of 70% of conversion cost.

At the end of the process, 4,200 units of finished products were transferred to store. Expected losses for this department are estimated to be 5% of production. All losses can be sold as scrap for RM12.00 per unit.

QUIZ - Avengers in trouble...

Thanos, the gem collector currently looking to reconcile his accounts receivables figures for the month ending 30^th September 2018. He is chasing the individuals who owed him for the past 3 months. Below is the list of the receivables;

No	Name	Amount
1	Iron Man	18,600
2	Thor	9,320
3	Captain America	10,400
4	Black Panther	25,000
5	Vision	4,750
6	Dr Strange	200
7	Hulk	13,830
8	Black Widow	3,900
9	Loki	7,700
10	Gamora	3,100

Below are the transaction occurred in the month of September 2018;

1)    Iron Man made a cash payment of RM2,600 and a further cash purchase of RM1,600.

2)    Thor made a purchase return back to Thanos amounting RM1,320. He also made a settlement by cheque for RM2,000.

3)    Captain America thought he is so cocky, he did nothing at all.

4)    Black Panther resigned from being a King due to a scandal. He settled his account by cheque amounting RM20,000 after Thanos granted a discount of RM5,000. He may now live Wakanda forever and ever.

5)    Afraid of losing his head to Thanos, Vision paid RM4,000 by cheque to Thanos. Unfortunately, the cheque was dishonoured and Vision was nowhere to be found.

6)    Dr Strange paid RM20 cash because he made a deal to settle by instalment.

7)    Hulk made a credit purchase from Thanos for RM2,170. He also made a payment by cheque for RM5,000.

8)    Someone paid for Black Widow all the amount outstanding, the Avengers think that somebody had a crush on her.

9)    Loki died, Thanos killed him before knowing that Thor had made some payment on behalf of Loki by cheque for RM5,700.

10) Since Gamora is the daughter of Thanos, she received a special discount of 90%. She took the offer.

11) Boboiboy who was kicked out from the Avengers team suddenly appeared. He wanted to settle his debt amounting RM1,000 he made 3 years ago. He paid by cheque.

Thanos is now thinking to kill Captain America........



What do you think?

Required;

a)   Journal entries for all transactions above.

b)   Thanos set 5% provision for doubtful debt for the month of September. What will be the reporting figure for the accounts receivables for the month.

c)   Extract of SOCI and SOFP ending September 2018.

Tuition - Slots still available

Maybe you need this personally or in groups....

Process Costing - Exercise

Nur Cosmetics produces a skin care product known as “Floles”. The production is conducted at a factory where it has to undergo three different processes. The output of each process is treated as the raw material of the next process to which it is transferred and output of the third process is transferred to finished stock. The supervisor had already prepared all the relevant information as below;

	1st Process	2nd Process	3rd Process
Material issued	30,000	20,000	10,000
Labour	8000	4,000	1,000
Overhead	12,000	10,000	15,000

10,000 units have been issued to the first process and after processing of each process is as under:

	Output	Normal Loss
First process	9,700 units	2%
Second process	9,500 units	3%
Third process	8,700 unts	5%

No stock of materials or work-in-progress was left at the end.

Required:

Prepare the process accounts of each of the above process

QUIZ - A Star Wars Story....

QUIZ

A long time ago, in a galaxy far far away….

Yoda, the owner of a manufacturing company called Resistance Inc is reconciling its accounts receivables figures. The list he found as at 30 August 2018 are as below;

No	Description	RM
1	Darth Vader	16,870
2	Luke Skywalker	4,260
3	Princess Leia	22,770
4	Hans Solo	10,380
5	Obi Wan Kenobi	800
6	Erso	1,420
7	Kylo	11,390
8	Rey	7,800
9	R2D2	28,000
10	C3PO	13,880

Below are the transactions which occurred in the month of September 2018.

1. Darth Vader made a cash purchase of RM2,500 and made a cheque to settle half of the outstanding amount.
2. Luke Skywalker paid RM1,260 through a bank transfer and promised to pay the balance on October 2018.
3. Princess Leia paid on behalf of Hans Solo amounting RM2,380 and later died in a crash while running away from the First Order.
4. Han Solo paid respect to the late Princess Leia and settled a cheque of RM2,500 for R2D2 for bringing him to Leia’s funeral.
5. Obi Wan Kenobi made additional credit purchase for RM3,400. Two days later, he made some purchase return amounting to RM400.
6. Erso paid RM420 by cheque but later found that the cheque was dishonoured due to insufficient fund in his account.
7. Kylo ran away because he failed to be a Jedi and nowhere to be found. Yoda declared his accounts as bad debt.
8. Knowing that Rey lost her lightsaber, Yoda sold his latest edition of his lightsaber to Rey at a price of RM5,000 which Rey paid RM1,000 cash and the balance was on credit.
9. Yoda offered R2D2 to settle off his debt by giving 10% discounts. He took the offer and wrote a cheque for it.
10. C3P0 as always made his payment by cheque for RM4,000 and a credit purchase of RM2,000 from Yoda. This is a recurring transaction which occurs every month.
11. On 28^th September 2018, Chewie appeared after he was declared bankrupt. He apologise and paid RM10,400 by cheque to settle off the history created by him.

Required:

a)   Journal entries for the above transactions.

b)   Accounts receivable statement as at 30^th September 2018.

c)   Yoda decided to make 5% provision for doubtful debt for the outstanding balances.

d)   Extract of SOCI and SOFP ending 30^th September 2018.

World Heritage Edutourism Program - Penang Chapter

20 September 2018, Thursday, Day 0
2245	Charter buses depart from Saidina Hamzah’s Mosque parking lot
21 September 2018, Friday, Day 1
0530	Check-in at Puan Soleha homestay (Ayer Itam)
0745	Breakfast at Transfer Road
0930	Penang 3D Trick Art Museum (Lebuh Penang)
1145	Lunch at Deen Maju Nasi Kandar Jalan Gurdwara, the best in town!
1230	Jumaat prayer (Kapitan Keling Mosque)
1430	Explorace – Penang Street Art, Discover Penang!
1730	Assemble and sunset at Padang Kota
1945	Dinner at Kapitan Restaurant
2030	Penang Avatar Secret Garden visit
2245	Gurney Drive supper
2330	Home and end of Day 1
22 September 2018, Saturday, Day 2
0745	Breakfast at Bukit Bendera
1110	Penang War Museum (Bukit Batu Maung)
1330	Free and easy (Drop at Komtar)
1700	Assemble at Padang Kota
1800	Head home and relax
2000	Sharing moments
2359	End of Day 2
23 September 2018, Sunday, Day 3
0845	Check-out
0900	Chowrasta Pickles shopping
1000	Home

As we want this to be a memorable excursion with full of information and knowledge. The participants should be ready and expect the activities to be a tiring one. We will spend most of our time discovering Penang by walking and boarding free buses. Rest assured that you will enjoy every second when you take it positively.

Of course, as you can see the name of the program is Edutourism Program, it is from the word Education Tourism. We don’t want the participants go home empty but we want it be full of fun and experience. Therefore, we have come out with a task for you.

You will be divided into a group of eight. As we have 40 participants in this program, so there will be 5 groups. Each group will be given a category. The categories are as follows;

1.  Food

2.  Tourism attractions

3.  People

4.  Heritage

5.  Business and Transportation

Each group should work in getting as much information regarding the above categories and these will be presented on the Sharing Moment Night later. The content of the categories are wide and we are pretty sure that each group can carry out their task creatively and successfully.  Additional to that, you are also required to get at least one stranger to prove that you are able to interact with people around you. We need evidence to that and it can be anybody. The more you get, the more friends you’ll have. Details will be elaborated further in Penang!

We can’t wait to share the knowledge and experience with you. GO PENANG!