MoneyMakers (Pty) Ltd, manufactures Product D which passes through two processes, namely process X and process...

  

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MoneyMakers (Pty) Ltd, manufactures Product D which passes through two processes, namely process X and process Y. Material is introduced at the start of process X and additional material is added to process Y when the process is 80% complete. Conversion costs are applied uniformly throughout both processes. The closing work in progress ("WIP") is estimated to be 60% for both processes. Assume that the production information for process Y, for the month of June 2023, is the following: Production units: Opening inventory Units introduced during the period Closing inventory Opening WIP production costs: Opening inventory WIP Costs from previous Process X Direct Material Conversion Costs incurred during the month of June: Transferred from Process X Direct material Conversion 2 000 11 000 3 000 Rand 105 000 50 000 35 000 20 000 Rand 255 000 150 000 65 000 40 000 REQUIRED: Prepare the process cost report using the weighted average method. 1.1 Prepare the quantity statement (with the equivalent units). Prepare the cost statement. 1.2 1.3 Prepare the cost allocation statement. Tabulate your answers as far as possible. Show and reference all your calculations clearly. MoneyMakers (Pty) Ltd, manufactures Product D which passes through two processes, namely process X and process Y. Material is introduced at the start of process X and additional material is added to process Y when the process is 80% complete. Conversion costs are applied uniformly throughout both processes. The closing work in progress ("WIP") is estimated to be 60% for both processes. Assume that the production information for process Y, for the month of June 2023, is the following: Production units: Opening inventory Units introduced during the period Closing inventory Opening WIP production costs: Opening inventory WIP Costs from previous Process X Direct Material Conversion Costs incurred during the month of June: Transferred from Process X Direct material Conversion 2 000 11 000 3 000 Rand 105 000 50 000 35 000 20 000 Rand 255 000 150 000 65 000 40 000 REQUIRED: Prepare the process cost report using the weighted average method. 1.1 Prepare the quantity statement (with the equivalent units). Prepare the cost statement. 1.2 1.3 Prepare the cost allocation statement. Tabulate your answers as far as possible. Show and reference all your calculations clearly.

Answer rating: 100% (QA)

Step 1 Calculate Equivalent Units Equivalent Units of Production for Direct Material Completed and transferred out 11000 units Ending work in progress ... View the full answer