A Manufacturing company
which has no opening stock of work in progress on 1 nov. during the month produce 500 unit of materials which was input into a process with a cost of $ 9000. Direct labour for onth was $3840. production overhead rate is 200%. closing stock 100 unit which were 100% complete in materials but 80% complete as to labour and overhead. no loss was incurred.
What is the full production cost of complete good in the month and the value of closing work in progess
I cannot work it out fully can you advise
Ask the Tutor ACCA MA
full costing
9y ago#1Please do not ask the same question using different names.
You must have an answer in the same book in which you found the question, and you should ask about whatever it is in the answer you do not understand.
There are full lectures on process costing on this website which explain exactly how to attempt this question.
Good day sir, I am sorry . I did not get this from a book . It was a question got from a tutor.
I worked it out as total cost 9000+7680+3840 =$20520
$20520/480 =$42.75
480 equivalent units
then i had $42.75*480= $20520
This was wrong but i do not know right answer
This is the question sir, I was assisting
Cream Ltd produces a certain food Item in a manufacturing process. on 1 November, there was no opening stock of work in progress During November, 500 units of material were input to the process, with a cost of $9000.00. Direct Labour costs in November were $3,840. Production overhead is absorbed at the rate of 200% of direct labour cost. Closing Stock 30 on November consisted of 100 units which were 100% complete as to material and 80% complete as to labour and overhead . There was no loss in the process.
9y ago#4But why are you not asking the tutor for the answer?
You have obviously not watched my lectures on process costing, and I cannot type them all out here.
You need to calculate the cost for material and labour separately because the WIP has different staged of completion.
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