# The work in process at june 1 consisted of 35000 kg

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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

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