Study the information provided below and then prepare the Process Cost Report for Process 2 using the
Question:
Study the information provided below and then prepare the Process Cost Report for Process 2 using the weighted average method.
Dehli Ltd uses two processes to manufacture takkies. The following details are applicable to Process 2 for July 2018:
Production details | Units |
Units of incomplete work (opening) | 45 000 |
(100% complete i.r.o. materials; 40% complete i.r.o. conversion costs) | |
Units received from the previous process | 180 000 |
225 000 | |
Units completed and transferred | (135 000) |
Units of incomplete work (closing) | 90 000 |
(100% complete i.r.o. materials; 70% complete i.r.o. conversion costs) | |
Details in connection with costs
Incomplete work (opening) | 720 000 |
Costs of previous process | 567 000 |
Direct materials | 99 000 |
Conversion costs | 54 000 |
Costs incurred during July: | 1 548 000 |
Transferred from previous process | 1 017 000 |
Direct materials | 189 000 |
Conversion costs | 342 000 |
2 268 000 | |
Expert Answer:
Part 1 Equivalent unit of production EUP Weighted Average Method Units Units completed and transferr... View the full answer
