Manchester Limited makes security alarms. At the beginning of March, following demands from shops over the summer
Question:
Manchester Limited makes security alarms. At the beginning of March, following demands from shops over the summer period, there is no opening work in progress. The cost of production during March was as follows: Direct material 10 725, Direct labour 6 600, Production overhead 3 900, Security alarms completed 2 750 Security alarms in progress 500. Work in progress is complete regarding materials but is 50% complete as it relates to direct labour and production overheads. i. Complete the schedule below to calculate the cost per security alarm for the first month of production. (7 marks) ii. Calculate the month-end valuation for work in progress. (3 marks)
See Table to fill out:.
Cost Elements Costs Completed Units Work units In-complete % Progress Equivalent Total Equivalent Cost per Unit WIP
Units Units Valuation
A B C D E F G H
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura