QUESTION 9 Process costing (15 marks) Create a handwritten manual solution OR a spreadsheet solution to the following problem. Paste a spreadsheet solution showing the row and column headings and the fomula view. Your report should be completely formula driven. Refer to the examples on Moodle. Note that in the situation below there are two production department, you are only asked to do the calculations for Process 1. F ?1 ? 750 A B D E 1 Two processing departments: weighted average cost method 2 DATA INPUT 3 Brown company produces a product which passes through two processes. Materials 4 enters at the beginning of process 1, and further material is added when Process 2 is 5 40% complete. Conversion costs are incurred uniformly throughout 6 the duration of both processes. Details for the month of May, 20x9 are: 7 8 Physical flows Process 1 Process 2 9 O/ WIP (units) 30% 2000 50% 1000 10 Started in May 6000 11 Completed in process 7000 ?) 12 C/ WIP (units) 50% 30% 13 Cost flows 14 O / WIP Tx-in $8,000 15 Mat. $3,000 Mat $3,000 16 Conv. $2,000 Conv $4,000 17 Current: Mat. $30,000 Mat. $35,000 18 Conv $60,000 Conv $45,000 19 Required: Using the weighted average cost method, determine the cost of 20 finished goods completed during May, and the cost of closing work in process 21 in both processing departments as at 31 May, 20X9. 22 23 SOLUTION / REPORT 24 Process 1 Physical Equivalent Units 25 flow Material Conversion QUESTION 9 Process costing (15 marks) Create a handwritten manual solution OR a spreadsheet solution to the following problem. Paste a spreadsheet solution showing the row and column headings and the fomula view. Your report should be completely formula driven. Refer to the examples on Moodle. Note that in the situation below there are two production department, you are only asked to do the calculations for Process 1. F ?1 ? 750 A B D E 1 Two processing departments: weighted average cost method 2 DATA INPUT 3 Brown company produces a product which passes through two processes. Materials 4 enters at the beginning of process 1, and further material is added when Process 2 is 5 40% complete. Conversion costs are incurred uniformly throughout 6 the duration of both processes. Details for the month of May, 20x9 are: 7 8 Physical flows Process 1 Process 2 9 O/ WIP (units) 30% 2000 50% 1000 10 Started in May 6000 11 Completed in process 7000 ?) 12 C/ WIP (units) 50% 30% 13 Cost flows 14 O / WIP Tx-in $8,000 15 Mat. $3,000 Mat $3,000 16 Conv. $2,000 Conv $4,000 17 Current: Mat. $30,000 Mat. $35,000 18 Conv $60,000 Conv $45,000 19 Required: Using the weighted average cost method, determine the cost of 20 finished goods completed during May, and the cost of closing work in process 21 in both processing departments as at 31 May, 20X9. 22 23 SOLUTION / REPORT 24 Process 1 Physical Equivalent Units 25 flow Material Conversion