Percent Completed
|
Units
|
Materials
|
Conversion
|
Work in process, beginning
|
20,000
|
100%
|
75%
|
Started into production
|
180,000
|
|
|
Completed and transferred out
|
160,000
|
|
|
Work in process, ending
|
?
|
100%
|
25%
|
|
|
Materials
|
Conversion
|
Work in process, beginning
|
|
RM25,200
|
RM24,800
|
Cost added during July
|
|
RM334,800
|
RM238,700
|
Assume that the company uses the weighted average method; you are required to compute the following for the Blending Department:
Units for ending work in process.
END WIP= 20,000 + 180,000-160,000=40,000
2marks)
Equivalent units of production and cost per equivalent units for July.
EU OF PRODUCTION DM=160,000 + (40,000 x 100%) = 200,000
EU OF PRODUCTION CC= 160,000+(40,000 x 75%)= 190,000
COST PER EU JULY
COST PER EU DM = RM25,200+RM334,800/ 200,000= 1.8
COST PER EU CC = RM24,800 +238,700/ 190,000=1.4 (13 marks)
The total cost of ending work in process and the total cost of units completed and transferred to Bottling Department.
TOTAL COST OF ENDING WIP = (1.8 x 20,000) +( 1.4 x 15,000) =56,000
TOTAL COST OF UNIT COMPLETE=
COST OF UNIT TRANSFER OUT = DM :160,000 x 1.8 = 288,000
=CC : 160,000 x 1.4= 224,000
TOTAL = 228,000 +224,000 =452,000
(4 marks)
State a diferrence between Job Order Costing and Process Costing.
-unit cost job order are computed by job on the job cost sheet and unit cost of process costing are computed by department (1 mark)
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