Question three (a) The following information relates to process 2 of a three-stage process for the...

Transcribed Image Text:

Question three (a) The following information relates to process 2 of a three-stage process for the month of December 2021. At the beginning of period 2 there was 2,400 units partly completed which had the following values: Cost element Material transfer from Process 1 Added materials Labour Production overheads Degree of completion 100% K 24,600 16,800 9,600 7,200 58,200 55% 60% 45% 12 600 units were transferred from process I during the period valued at K139,500. The costs for the resources used in the current period were as follows: K 72,000 58,500 Material Labour Overheads Total 54,600 185,100 The closing WIP at the end of the period was 1,800 units which had the following stages of completion: Cost element Material transfer from Process 1 Added material Labour | Production overheads The balance of 13,500 was transferred to finished goods. Degree of completion 100% 50% 45% 40% Required (i) Using the FIFO method calculate the value of units transferred to finished goods and the value of closing WIP (16 marks) And (ii) Prepare process account. (9 marks) Question three (a) The following information relates to process 2 of a three-stage process for the month of December 2021. At the beginning of period 2 there was 2,400 units partly completed which had the following values: Cost element Material transfer from Process 1 Added materials Labour Production overheads Degree of completion 100% K 24,600 16,800 9,600 7,200 58,200 55% 60% 45% 12 600 units were transferred from process I during the period valued at K139,500. The costs for the resources used in the current period were as follows: K 72,000 58,500 Material Labour Overheads Total 54,600 185,100 The closing WIP at the end of the period was 1,800 units which had the following stages of completion: Cost element Material transfer from Process 1 Added material Labour | Production overheads The balance of 13,500 was transferred to finished goods. Degree of completion 100% 50% 45% 40% Required (i) Using the FIFO method calculate the value of units transferred to finished goods and the value of closing WIP (16 marks) And (ii) Prepare process account. (9 marks)