Question 1 : FIFO method

Prepare Process 4 Account from the following data:

Data for Process 4 for period ended 30 June

OWIP: 200 kilos at a cost of RM940

Degree of completion	Material	40%
	Labour	60%
	Overhead	60%
CWIP	100 kilos
Degree of completion	Material	60%
	Labour	40%
	Overhead	40%

Input during period

Previous process 2,000 kilos at a cost of RM5,400

Material added RM1,880 (assume negligible weight)

Labour cost RM3,640

Overheads 50% of labour cost

Normal loss Budgeted for as 10% of the input from the previous process in the current period. It has no scrap value

Transfer to finished goods 1,600 kilos