Question 1: Prepare the Boxing Department production cost report using the weighted average method for the month of March 2017 (round up to 2 decimal place).

The information are given below:

Build & Built. is a factory that produces calculator, CARRS and it starts its process in the Fixing Department. Upon completion of processes in Fixing Department, the product is transferred to Boxing Department in order to complete its processes.

In the Boxing Department, the conversion costs are incurred uniformly throughout the process. Materials are added only in the beginning of the process. Overhead is allocated on the basis of 200% of the direct labour cost.

Work in process, 1 October 2018 (50,000 units, 75% complete) cost of which includes:

Transfer In Fixing Department $ 500,000

Direct Materials Boxing Department $ 2,000,000

Direct Labour - Boxing Department $ 4,500,000

Overhead Boxing Department $ ?

During the month of October 2018; 110,000 units were completed and transferred to finished goods inventory.

The Boxing departments costs during October 2018 were:

Transferred in $ 10,000,000

Material added $ 12,000,000

Direct Labour $ 15,000,000

Overheads $ ?

At the end of October 2018, 40,000 units were still in process in Boxing department. These were expected to be 80% complete of for conversion.