ABC Ltd produces plastic ice cube trays in two processes: heating and stamping. All materials are added at the beginning of the Heating Department process, and ABC Ltd uses the weighted-average method to compute equivalent units.

On November 1, the Heating Department had in process 1,000 trays that were 70% complete. In November, it started the production of 12,000 trays. On November 30, 2022, 2,000 trays that were 60% complete were in process.

The following cost information for the Heating Department was also available.

Word in process, November 1

a) Prepare a production cost report for the Heating Department for November 2022, using the weighted-average method and explain why ABC Ltd using the weighted-average method

b) Journalise the transfer of costs to the Stamping Department

The cost incurred in November