A manufacturing company produces a product in three departments. On March 1, 2018 Department A, B and C had 5000 units (80% completed as to material and 60% as to conversion), 7000 units (90% completed as to material and 80% as to conversion) and 3000 units (60% completed as to material and 50% as to conversion) in process respectively. During the month Department A put into process 15,000 units and there were 3,000 units in the process (80% completed as to material and 90% as to conversion) as at March 31, 2018, and the completed units were transferred to Department B. Department B completed units and transferred to Department C and there were only 4,000 units in process in Department B (60% completed as to material and 80% as to conversion.) as at March 31, 2018. Department C completed units and transferred to the finished goods inventory except for 5000 units which were in the process (80% completed as to material and conversion) as at March 31, 2018.
Required:
a. Calculate equivalent production units of the three departments. (09)
b. Suppose that per unit cost of direct material, direct labor, and factory overhead was Rs.
2, Rs. 3, and Rs. 4 respectively in Department A. Calculate the cost of work in process
inventory as of March 31, 2018, in Department A.

Answer rating: 100% (QA)

a Department A March 1 5000 units 80 completed as to material and 60 as to conversion March 31 3000 ... View the full answer