Rock Industry Accounting Treatment

Rock Industry  Accounting Treatment

Instructions/Descriptions

Rock Industry Plc Accounting Treatment

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Question Description

Let F be a DAG with n vertices.

How many strongly connected components are there in F? Defend your answer.

We choose to add a directed edge from every sink of F to every source of F. Let F’ be the resulting digraph. What is the number of strongly connected components in F’? Defend your answer.

Question Description

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Hard steel, product produced by Rock Industry Plc., passes through processes A and B before completion. In process B, a by-product Soft steel is produced which, after processing, in process C, is sold at a profit of 25% of selling price. The following data is given below: Process A B C Output in units 5,290 4,000 250 M Normal loss in process % of input 20 10 5 K K K Scrap value of any loss in process /unit 2.5` 8 – Direct material introduced (5,000 units) 50,000 — – Direct materials added 10,000“ 3,100 250 Direct wages incurred @K3/hr. 12,000 15,900 550 Direct expenses 7,800 2,100 — Production overheads for the month, K85, 000, is absorbed by Labour hour rate.

Required;

(A) Process A (B) Process B (C) Process C (d) Abnormal gain account

Define and explain briefly, the accounting treatment of: (a) By-product (b) Joint product

Rock Industry Plc Accounting Treatment

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