$(5$ Marks$)$

$7.$ From the following information relating to a production process in March, calculate the cost of finished output in the month and the value of the closing inventory, using the weighted average cost valuation method:

Opening inventory on $1$ March: $3,000$ units

$100\%$ complete for direct materials

$30\%$ complete for conversion costs

Cost $=$$$13,570($ direct materials $$12,600+$ conversion costs $$970)$

Costs incurred during March:

Direct materials: $7,000$ units input,

cost $$28,000$ Conversion costs: $$17,430$

Units completed in the month $($finished goods$)$: $8,000$ units

Closing inventory:

$2,000$ units: $100\%$ complete for direct materials and $60\%$ complete for conversion costs.