QUESTION THREE

The following data pertains to process $1$ for March $2013$ of Beta Ltd$.$ Opening work in

progress $1500$ units at sh$.15,000$

Degree of completion:

Materials $100\%,$ labour and overhead $33\frac{1}{3}$ Input materials $18500$ units at sh$.52,000$

Direct labour sh$.14,000$

Overheads sh$.28,000$

Closing work in progress $5000$ units

Degree of completion: material $90\%,$ labour and overheads $30\%$

Normal process loss is $10\%$ of total input $($opening work$-$in$-$progress units $+$ units put in$)$

Scrap value sh$.2$ per unit

Units transferred to the next process $15000$ unitsAssume FIFO method is used by the

company.

Required:

i$)$ Compute equivalent units of production.

$(5$ Marks$)$

ii$)$ Compute cost per equivalent unit for each cost element.

$(3$ Marks$)$

iii$)$ Compute the cost of finished output and closing work in progress.

$(6$ Marks$)$

iv$)$ Prepare process account and other accounts.

$(6$ Marks$)$