Question 1 The following data relates to a manufacturing company operating a process costing system. Opening...

 

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Question 1 The following data relates to a manufacturing company operating a process costing system. Opening work in process (WIP) Units introduced into the process Units completed and transferred to finished goods stock Normal loss units Closing WIP of 700 units was completed as follows: Material 100% Labour 50% Production overhead 40% Cost introduced into the process: Material Labour Production overhead Losses are recognized at the end of the production process and are sold for RM2.00 per unit. (b) Prepare the cost allocation for the Required: (a) Compute the equivalent units and cost per equivalent unit for the month for the process above. (9 marks) process Nil 4,000 2,750 550 above. RM20,000 RM12,000 RM 7,000 (c) Prepare the process account for the process above. (5 marks) (5 marks) (d) Describe TWO (2) differences between process costing and job costing, and provide an example each of industries that use process costing and job costing systems. (6 marks) [Total: 25 Marks] Question 1 The following data relates to a manufacturing company operating a process costing system. Opening work in process (WIP) Units introduced into the process Units completed and transferred to finished goods stock Normal loss units Closing WIP of 700 units was completed as follows: Material 100% Labour 50% Production overhead 40% Cost introduced into the process: Material Labour Production overhead Losses are recognized at the end of the production process and are sold for RM2.00 per unit. (b) Prepare the cost allocation for the Required: (a) Compute the equivalent units and cost per equivalent unit for the month for the process above. (9 marks) process Nil 4,000 2,750 550 above. RM20,000 RM12,000 RM 7,000 (c) Prepare the process account for the process above. (5 marks) (5 marks) (d) Describe TWO (2) differences between process costing and job costing, and provide an example each of industries that use process costing and job costing systems. (6 marks) [Total: 25 Marks]