A department of Imperial Chemical Company produces a special type of chemical for industrial use. All direct
Question:
A department of Imperial Chemical Company produces a special type of chemical for industrial use. All direct materials are introduced at the start of the process. Conversion costs are incurred uniformly throughout the process.
In June 2020, there was no beginning inventory. Units started, completed, and transferred were 1,350,000 liters. Units in process on June 30, 2020, were 498,000 liters. The ending work in process was 35% converted. Costs incurred during June were direct materials at £8,316,000 and conversion costs at £3,810,750.
1. Compute the total work done in equivalent units and the unit cost for June 2020.
2. Compute the cost of units completed and transferred. Also, compute the cost of units in ending work in process.
Step by Step Answer:
Introduction To Management Accounting
ISBN: 9781292412566
17th Edition, Global Edition
Authors: Charles Horngren, Gary L Sundem, Dave Burgstahler