Crystal Company Ltd. makes a single product using two processes. Quality control check takes place duringthe process, at which point, rejected units are separated from good units.The following details relate to production for the month of June 20X22 for Process 2. Work-in-process, beginning inventory: -0- Transfer from Process 1: 15,000 units valued at $51.40 each Other manufacturing costs incurred during the month: Direct material added$513,000Direct labour$365,000Manufacturing overhead$211,000 Normal losses were estimated to be 4% of input during the period. The scrap value of any loss is $38 per At inspection 1,750 units were rejected as These units had reached the following degree of completion: Input material 100%Direct material added 50%Conversion costs 30% 12,000 units were completed and transferred to Finished Goods Work-in-process at the end of June had reached the following degree of completion: Input material 100% Direct material added 80% Conversion costs 40% State the journal entries necessary to record the assignment of direct materials, direct manufacturing wages and manufacturing overhead applied to Process Also give the journal entries to record the cost of goods completed and transferred to finished goods. Given that 15% of the unexpected losses were as a result of pilferage, prepare the abnormal spoilage statement, clearly showing Crystal Company Ltd Product’s true loss

Process costing is a method used for the manufacturing industries that produce a single product and…

Answered: State the journal entries necessary to…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 20E: Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through...

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Crystal Company Ltd. makes a single product using two processes. Quality control check takes place during

the process, at which point, rejected units are separated from good units.

The following details relate to production for the month of June 20X22 for Process 2.

Work-in-process, beginning inventory: -0-
Transfer from Process 1: 15,000 units valued at $51.40 each
Other manufacturing costs incurred during the month:

Direct material added	$513,000
Direct labour	$365,000
Manufacturing overhead	$211,000

Normal losses were estimated to be 4% of input during the period. The scrap value of any loss is $38 per
At inspection 1,750 units were rejected as These units had reached the following degree of completion:

Input material 100%

Direct material added 50%

Conversion costs 30%

12,000 units were completed and transferred to Finished Goods
Work-in-process at the end of June had reached the following degree of completion:

Input material 100%

Direct material added 80%

Conversion costs 40%

State the journal entries necessary to record the assignment of direct materials, direct manufacturing wages and manufacturing overhead applied to Process Also give the journal entries to record the cost of goods completed and transferred to finished goods.
Given that 15% of the unexpected losses were as a result of pilferage, prepare the abnormal spoilage statement, clearly showing Crystal Company Ltd Product’s true loss

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