Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed

Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012
Solution Exhibit B
Step 4: Summarise total costs to account for and assign these costs to units completed and units in closing work in progress using the FIFO Method, Cooking Department of Telemark-Kjemi for June 2010 (in NKr).
Total
Transferred-in
production

costs
Direct materials
Conversion costs
costs





Cost per

Cost per

Cost per


Equivalent equivalent Total Equivalent equivalent Total
Equivalent equivalent Total



units unit costs units
unit
costs
units
unit
costs
(10)=


(1) (2)
(3)=(1)×(2) (4)
(5) (6)=(4)×(5) (7)
(8)
(9)=(7)×(8) (3)+(6)+(9)
Panel Ab Total costs to account for work in progress, opening
(from Solution Exhibit A) 40 980
*
39,200 0
–
0 30 600 18,000 57,200 Work done in current period only
(from Solution Exhibit A) 80 1,070
*
85,600 90 400 36,000 75 663 49,725 171,325 To account for 120 124,800 90
†
36,000 105
‡
67,725 228,525
Panel B
Assignment of costs Completed and transferred out
(90 physical tonnes) Work in progress, opening
(40 physical tonnes) 40 980
*
39,200 0
–
0 30 600 18,000 57,200 Work done in current period to complete opening work in progress
*
0*
*
0 40
†
400 16,000
‡
10
‡
663 6,630 22,630 Total from opening stock 40 39,200 40 16,000 40 24,630 79,830 Started and completed
(50 physical tonnes)
||
50
||
1,070
*
53,500 50
||
400 20,000
||
50
||
663 33,150 106,650 Total completed and transferred out (90 physical tonnes)

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