Hi Sir
please I need help
1-The following data relates to the direct labour of mixing department of Biscuits Co:
Actual production hours 380
Training hours 70
Idle time 25
Total hours 475
Mixing department has a total staff of 20 men including two (2) supervisors.
Normal working hours per week for direct labour are 35 hours. Direct labour may be required to work overtime to meet general requirements of production. Overtime premium is three-quarters of basic pay. Basic wage per hour is $. 10.
What is total cost charged as direct labour for the period?
2- A company use process costing with FIFO methodology to value its output. Following data relates to the current period:
Work in progress Units
Opening 2,000
Closing 1,500
WIP - degree of completion
Opening Material: 100%, Conversion cost: 50%
Closing Material 100%, Conversion cost: 35%
If units introduced at the start of the process were 5,000 then:
How many units were both introduced and completed during the current period?
Ask the Tutor ACCA MA
2014 exam
12y ago#1Q1 The direct labour cost is 380 production hours x $10 basic wage = $3800
Q2 Since there were 5,000 units introduced and 1500 were still in progress at the end of the period, it means that the other 3,500 were introduced and completed during this period.
(In addition, the 2,000 in progress at the start of the period will have been completed. So in total 5,500 were completed. But only 3,500 of them were both introduced and completed in this period.)
I understand now better. Thanks Sir
12y ago#3That's great :-)
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