Clay Products Ltd produces handmade decorative vases. A process costing system is used. All materials are introduced at the start of the process. Labour costs are incurred uniformly throughout the production process.

The following information is available for the month of July:

The value of work-in-progress at 1 July is as follows:

During the month of July, 7,000 vases were transferred to finished goods stock. Materials introduced cost £14,700. Labour costs incurred were £12,820.
Required Using the method of weighted averages, prepare a process cost statement for the month of July showing unit costs, the value of finished goods and the value of work-in-progress at the end of the month.

Transcribed Image Text:

Work-in-progress Work-in-progress at 1 July (60% complete) at 31 July (30% complete) 2,000 units 1,200 units