The opening and closing work in process are respectively 60 per cent and 50 per cent complete as to conversion costs. Losses occur at the beginning of the process and have a scrap value of £0.45 per kg.
The opening work in process included raw material costs of £56 420 and conversion costs of £30 597. Costs incurred during the period were:
Materials input £276 672
Conversion costs £226 195
(a) Calculate the unit costs of production (£ per kg to four decimal places) using:
(i) the weighted average method of valuation and assuming that all losses are treated as normal;
(ii) the FIFO method of valuation and assuming that normal losses are 5 per cent of materials input.
(b) Prepare the process account for situation (a) (ii) above.