Meow Cat Food Ltd's division A produces canned cat food in standard sizes. Set out below...

 

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Meow Cat Food Ltd's division A produces canned cat food in standard sizes. Set out below is information for the month of January: Work-in-process inventory, 1 January Direct materials: 100% complete Conversion: 50% complete 8,000 units $12,000 $24,000 Units started during January 16,000 units Units completed and transferred out during January 16,000 units Work-in-process inventory, 31 January Direct materials: 100% complete Conversion costs: 50% complete Costs incurred during January Direct materials Conversion $24,000 $256,000 Required: Show ALL your workings. Applying the weighted average method complete the following: (i) Calculate equivalent units of direct materials and conversion for the month of January. (4 marks) (ii) Calculate direct material cost and conversion cost per equivalent unit for the month of January. (8 marks) (iii) Prepare an analysis of total costs showing the cost of goods completed and transferred out during January and cost of WIP inventory on 31 January, as per Exhibit 5.4 (p.183) of the textbook. (4 marks) Meow Cat Food Ltd's division A produces canned cat food in standard sizes. Set out below is information for the month of January: Work-in-process inventory, 1 January Direct materials: 100% complete Conversion: 50% complete 8,000 units $12,000 $24,000 Units started during January 16,000 units Units completed and transferred out during January 16,000 units Work-in-process inventory, 31 January Direct materials: 100% complete Conversion costs: 50% complete Costs incurred during January Direct materials Conversion $24,000 $256,000 Required: Show ALL your workings. Applying the weighted average method complete the following: (i) Calculate equivalent units of direct materials and conversion for the month of January. (4 marks) (ii) Calculate direct material cost and conversion cost per equivalent unit for the month of January. (8 marks) (iii) Prepare an analysis of total costs showing the cost of goods completed and transferred out during January and cost of WIP inventory on 31 January, as per Exhibit 5.4 (p.183) of the textbook. (4 marks)