The work in process at june 1 consisted of 35000 kg

This preview shows page 2 - 4 out of 5 pages.

The work in process at June 1 consisted of 35,000 kg (60% complete as toconversion) with a cost of direct materials for X of $1,500 and Y of $7,500,direct labour $750 and overhead of $2,250.Units completed and transferred out during June consisted of 745,000 kgs.Costs added during the month are as follows:Direct Material X$39,150Direct Material Y191,250Direct Labour19,225Overhead56,375Work in process at June 30 consisted of 45,000kg (70% complete withrespect to conversion costs).The weighted average method is used to account for the costs of production.Required:Calculate the cost of production for completed goods and ending WIP in thecombining department as at the June 30.Your calculation should show:i.physical flow of units (1.5 marks)ii.equivalent units of production (3.5 marks)iii.summarise costs and unit costs (rounded to 4 decimal places)(4.5 marks)iv.apply costs to inventories(2.5 marks)(Total: 12 marks)
Question 2Muddled, who is enrolled in ACFI2003, is having trouble understanding the conceptsunderpinning Question 1 of the Major Assignment.Muddled says: "I’m confused.I understood the first lecture and thought this coursewould be a walk in the park but now I am freaking out as new terms are beingintroduced in every lecture topic.The loaf of bread example that was used in the first lecture was easy to understand:we costed the loaf of bread by tracing direct materials and direct labour to the loafand then applied the remaining costs as overhead.I could see from the diagramshowing T-accounts how materials, labour and overhead are utilised in theproduction of bread, and how they were transformed into WIP and finished goods.But Question 1 does not fit the template I have developed for the loaf of bread

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 5 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
One
Professor
N/A
Tags
Job costing, equivalent units, fundamental costing principle

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture