Abbott Ltd produces a chemical used to clean showers in a single process in the Production Department.

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Abbott Ltd produces a chemical used to clean showers in a single process in the Production Department. Raw materials in the form of chemicals are added at the beginning of the process, and a litre container is added at the end. The conversion costs (direct labour and factory overhead) are incurred uniformly throughout the process. The following cost and production data are available for the month of October 2025.image text in transcribed

The ending work in process inventory was 60% complete as to conversion costs.
Required

(a) Determine equivalent units for both raw materials and conversion costs.

(b) Prepare a cost of production report for the October 2025 production.

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Accounting

ISBN: 9780730382737

11th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie

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