Question

Part A Selpat Compeany produoes silicons baking man in two processes heating and swnong An materials art iddd麒the begm'ng of de lleing Deprtncnt proces. The coneuny ssed weighood-averagc method io compute oqivaless usiis On Otober 1 Heating Departmeal precessed 2,000 mis tat were 70% oorplele. DunROcǐher, n complete were in procos Below is the cost imformalion Soe Healing Deportment. Wark in processi1 Octobor Conversion costs Total cost of work in process (1 Oetober Cot incurred in Oclobe Materials Labour .600 Required Prepare a peoduction cost repoet for Heating Department for mens of Ocober 2017 (1S marks) ITOTAL IS MARKS End ef Pag

Answer 1

Silpat Company
Production Cost Report( Heating Department)
For the month ended 31st October 2017
Quantity Schedule	Units	Units
Units in process in the beginning	2,000
Units started & completed&transferred                                                   To next department	20,000
Units in process at the end	4,000	26,000
Cost Charged To The Department
Material( 1280+6000)	7280
Labour(720+4600)	5320
Overhead(2000+8100)	10100	22700
Cost Charged To The Department		22700
Equivalent units produced
Material		23000
Labour and Overhead		23000
Cost per unit
Material( 7280/23000)	0.317
Conversion Cost(15420/23000)	0.670	0.987
Cost per unit		0.987
Cost Accounted for as follows
Opening Work-in-process
Material(600*0.317)	190.2
Conversion cost(600*0.670)	402	592.2
Units introduced and transferred( 20,000*0.987)		19740
Closing Work-in-process(2400*0.987)		2368.8
		22701

Equivalent Units Produced

Materials {(2000*0.3)+(20,000*1.0)+(4000*0.6)}= 23000 units

Labour costs{(2000*0.3)+(20,000*1.0)+(4000*0.6)}=23000 units

Overhead costs{(2000*0.3)+(20,000*1.0)+(4000*0.6)}=23000 units

Unit cost of Equivalent unit for a given period is as follows:

Unit Cost= Costs of the period/Equivalent units of the period

Cost Per Unit

Materials(R7200/23000 units)=0.317

Overheads(RM