Question: Study the information provided below and then prepare the Process Cost Report for Process 2 using the weighted average method. Dehli Ltd uses two processes
Study the information provided below and then prepare the Process Cost Report for Process 2 using the weighted average method.
Dehli Ltd uses two processes to manufacture takkies. The following details are applicable to Process 2 for July 2018:
| Production details | Units |
| Units of incomplete work (opening) | 45 000 |
| (100% complete i.r.o. materials; 40% complete i.r.o. conversion costs) | |
| Units received from the previous process | 180 000 |
| 225 000 | |
| Units completed and transferred | (135 000) |
| Units of incomplete work (closing) | 90 000 |
| (100% complete i.r.o. materials; 70% complete i.r.o. conversion costs) | |
Details in connection with costs
| Incomplete work (opening) | 720 000 |
| Costs of previous process | 567 000 |
| Direct materials | 99 000 |
| Conversion costs | 54 000 |
| Costs incurred during July: | 1 548 000 |
| Transferred from previous process | 1 017 000 |
| Direct materials | 189 000 |
| Conversion costs | 342 000 |
| 2 268 000 | |
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