Question: 1

All-win Engineering limited uses Process Costing system. Following data is available for Department:-1 for the month of May, 2020:

Quantitative data:

Beginning work in process inventory ..........................................5,000 units

Units put into process during the month .......................................55,000 units

Units completed and transferred to department: 2 during the month .......52,000 units

Units in work in process closing inventory at month end ...................5,000 units

Cost data:

Units in beginning work-in-process inventory contains Cost, as follows:

Direct materials.........................................................................................Rs 36,000

Direct labor...............................................................................................38,000

Factory overhead.......................................................................................42,000

Costs added during the month are as follows:

Direct materials consumed ......................................................Rs280,400

Direct labor incurred .............................................................321,125

Factory overhead applied .......................................................339,225

Other statistical data:

Work in process opening inventory is completed 75% as per direct material and 60% as per conversion cost.

Work in process closing inventory is completed 80% as per direct material and 65% as per conversion cost.

All losses are normal and occurred at the beginning of the month.

Required:

i).Prepare the Cost of Production Report for Department: 1 for the month of May, 2020, if company uses "Weighted Average costing system".

ii). Distinguish between process costing and job order costing, and give at least three examples for each one.