d) Joy Company manufactures a high quality pipes in two departments: 1 and 2 Materials are...

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d) Joy Company manufactures a high quality pipes in two departments: 1 and 2 Materials are introduced at various points during work in department 1. After products in department I are completed, the materials are transferred into department 2 in which the pipe is formed. Materials are accounted for in the department on the basis of Kilograms. Conversion costs are incurred evenly during the process. Selected data relating to the department 1 during June 2021 are given below: Production data: WIP, June 1: 100% complete as to materials, 80% complete as to conversion costs 310,000kgs Units started into production during June 560,000kgs Units completed and transferred to department 2 Units in process, June 30: 80% complete as to Materials, 15 % complete as to conversion costs 60,000kgs Cost data: Page 2 of 5 WIP, June 1: Materials cost Conversion costs Cost added during June: Required: Materials cost Conversion costs Sh 1,270,000 Sh 920,000 Sh 7,510,000 Sh 3,980,000 Prepare a production-cost report for department 1 using Weighted Average Method QUESTION TWO (10 Marks) TOTAL 15 MARKS) a) The total maintenance costs and machine hours of Omega ltd for 8 periods is given as follows; Period 1 Machine Hours 40 2 24 3 80 4 35 5 61 6 70 7 20 8 28 Required Based on the above data, establish the cost function using Maintenance cost(shs.) 8,200 7.100 16,400 7.300 10,600 15,400 6,520 7,000 i. High low method (3 Marks) ii. Least squares method (6 Marks) iii. Using the relationship represented by the regression model in ii above, determine the maintenance costs of 90 machine hours. (2 Marks) d) Joy Company manufactures a high quality pipes in two departments: 1 and 2 Materials are introduced at various points during work in department 1. After products in department I are completed, the materials are transferred into department 2 in which the pipe is formed. Materials are accounted for in the department on the basis of Kilograms. Conversion costs are incurred evenly during the process. Selected data relating to the department 1 during June 2021 are given below: Production data: WIP, June 1: 100% complete as to materials, 80% complete as to conversion costs 310,000kgs Units started into production during June 560,000kgs Units completed and transferred to department 2 Units in process, June 30: 80% complete as to Materials, 15 % complete as to conversion costs 60,000kgs Cost data: Page 2 of 5 WIP, June 1: Materials cost Conversion costs Cost added during June: Required: Materials cost Conversion costs Sh 1,270,000 Sh 920,000 Sh 7,510,000 Sh 3,980,000 Prepare a production-cost report for department 1 using Weighted Average Method QUESTION TWO (10 Marks) TOTAL 15 MARKS) a) The total maintenance costs and machine hours of Omega ltd for 8 periods is given as follows; Period 1 Machine Hours 40 2 24 3 80 4 35 5 61 6 70 7 20 8 28 Required Based on the above data, establish the cost function using Maintenance cost(shs.) 8,200 7.100 16,400 7.300 10,600 15,400 6,520 7,000 i. High low method (3 Marks) ii. Least squares method (6 Marks) iii. Using the relationship represented by the regression model in ii above, determine the maintenance costs of 90 machine hours. (2 Marks)

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a ProductionCost Report for Department 1 using Weighted Average Method Equivalent UnitsMaterials CostConversion Costs Units to account for June WIP Ju... View the full answer