Question

)) Determine the direct material costs and manufacturing overhead costif RM8,000 of this balance in () is direct labor cost (CL02:PLO2.C3) (4 marks) QUESTION 3 (25 MARKS) Cempaka Bhd. manufactures product that goes through the departments prior to completion - the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Missing Department during March Percepted Mate Cover Cost added during the year RED 0 Required: Assume that the company uses the weighted average method *) Determine the equivalent units for March for the mixing department (CLO2.PLOI:C3) marks) ACCT20/Sep Oct 2018 Page 9 of 10 b) Compute the cost per equivalent it for March for the department (CLORPLOI-C) marts) c) Determine the total cost of ending work in process transferred to the packaging department and the cost of (CLOP-PLOIC) mars 4) Prepare the coleconciliation report for the mixing for March CLO2.PLOIC) (4 marks) c) Explain the condition would it be appropriate to process costing systems (CLOPLO2.C) mars) Briefly explain TWO (2) similarities between job order and process costing (CLO2.PLO2.C2) (4 marks) *** END OF QUESTIONS

Answer 1

There is some error in question
As There were 240000 units in beginning WIP and 106000 units started to production, then how can 1160000 units be completed.
I have answered taking 1160000 units transferred and 140000 units in ending WIP, ignoring the above error.

a. Equivalent units = Units transferred + Ending WIP x Completion
Materials = 1160000 + 140000 x 70% = 1258000 units
Conversion = 1160000 + 140000 x 40% = 1216000 units

b. Cost per equivalent unit = (Beginning Cost + Cost added) / Equivalent units
Material = (87300+900300)/1258000 = 0.79 per unit
Conversion Cost = (66800+445200)/1216000 = 0.42 per unit

c.

	Material	Conversion	Total
Ending Work in process inventory
Equivalent units	98000	56000
Cost per Equivalent unit	$           0.79	$             0.42
Cost of Ending Work in process inventory	$      76,935	$        23,579	$      100,514
Units completed and transferred out
Units transferred	1160000	1160000
Cost per Equivalent unit	$           0.79	$             0.42
Cost of Units transferred	$    910,665	$      488,421	$ 1,399,086

d.

Costs to be accounted for
Cost of beginning work in process	$    154,100
Cost added during production	$1,345,500
Total Costs to be accounted for	$1,499,600
Costs accounted for as follows
Cost of Ending work in process	$    100,514
Cost of Units transferred	$1,399,086
Total Costs accounted for	$1,499,600

As per HOMEWORKLIB RULES we are suppose to answer 4 parts, i have answered 4, so kindly post other parts separately