DML Ltd manufactures cement for the construction industry in Ghana. Provide below are data relating to kilograms
Question:
DML Ltd manufactures cement for the construction industry in Ghana. Provide below are data relating to kilograms of cement processed through the Mixing Department in June, the first department in the manufacturing process.
Kilograms of Cement | Percentage Completed | ||
Materials | Conversion | ||
Work in process, June 1 | 90,000 | 75% | 35% |
Work in process, June 30 | 60,000 | 50% | 15% |
Started into production during June | 310,000 |
Cost data relating to cement production in June are provided below:
Material cost in work in process inventory, June 1 GHS300,000
Conversion cost in work in process inventory, June 1 GHS210,000
Material cost added during June GHS1,820,000
Conversion cost added during June GHS680,000
Required:
On the assumption that the firm uses the weighted average method in its process costing system,
- Compute the equivalent units of production for June
- Compute cost per equivalent unit for materials and conversion
- Compute the cost of units transferred and the cost of ending work in process inventory
- Prepare a cost reconciliation report for the Mixing Department for June
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer