(a) The following information relates to process 2 of a three-stage process for the month of...

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(a) The following information relates to process 2 of a three-stage process for the month of December 2021. At the beginning of period 2 there was 2,400 units partly completed which had the following values: Cost element Material transfer from Process 1 Added materials Labour Production overheads Degree of completion K 24,600 16,800 9,600 7.200 58,200 100% 55% 60% 45% 12 600 units were transferred from process I during the period valued at K139,500. The costs for the resources used in the current period were as follows: Material Labour K 72,000 58,500 Overheads Total 54,600 185,100 The closing WIP at the end of the period was 1,800 units which had the following stages of completion: Cost element Material transfer from Process 1 Added material |Labour Production overheads The balance of 13,500 was transferred to finished goods. Degree of completion 100% 50% 45% 40% Required (i) Using the FIFO method calculate the value of units transferred to finished goods and the value of closing WIP (16 marks) And (ii) Prepare process account. (9 marks) (Total 25 marks) (a) The following information relates to process 2 of a three-stage process for the month of December 2021. At the beginning of period 2 there was 2,400 units partly completed which had the following values: Cost element Material transfer from Process 1 Added materials Labour Production overheads Degree of completion K 24,600 16,800 9,600 7.200 58,200 100% 55% 60% 45% 12 600 units were transferred from process I during the period valued at K139,500. The costs for the resources used in the current period were as follows: Material Labour K 72,000 58,500 Overheads Total 54,600 185,100 The closing WIP at the end of the period was 1,800 units which had the following stages of completion: Cost element Material transfer from Process 1 Added material |Labour Production overheads The balance of 13,500 was transferred to finished goods. Degree of completion 100% 50% 45% 40% Required (i) Using the FIFO method calculate the value of units transferred to finished goods and the value of closing WIP (16 marks) And (ii) Prepare process account. (9 marks) (Total 25 marks)

Answer rating: 100% (QA)

Statement of equivalent production Opening work in progress2400 units Process1 transfers12600 units ... View the full answer