Paper Mill process costing - February 2020
Opening WIP (units)
Opening WIP - raw materials ($) $18,000
Opening WIP - Conversion costs ($) $6,000
Units transferred in 1,050,000
Cost of Units transferred in $600,000
Direct Materials added ($) $19,500
Conversion Costs added ($) $20,000
Costs transferred in Complete % 100%
Materials Complete %100%
Conversion Costs % 45%
Units completed 900,000
a) Calculate the closing WIP (units and $) and the value of completed goods for the month ended 29 February 2019.
b) Choose another method of process costing, describe it, and compare and contrast between it and the Weighted Average Cost Method.
c) Describe what is meant by 'relevant range', what might be one of the impacts for this factory if it is breached?
a) 170,050 units and $103,347.52 (computation in between were not rounded off) refer to the attachment for the computation b)... View the full answer