Natural Fibres Ltd manufactures natural fabrics for the clothing industry. The following data relate to Weaving Department for the month of December:

There were 20 000 units in process in the Weaving Department on 1 December (100 per cent complete as to direct material and 40 per cent complete as to conversion).
Required:
1. Calculate each of the following amounts using weighted average process costing:
(a) Cost of goods completed and transferred out of the Weaving Department during December.
(b) Cost of the 31 December work in process inventory in the Weaving Department.
2. Repeat requirement 1 using the FIFO method.

Transcribed Image Text:

FIFO Weighted average 40 000 Total equivalent units of direct material 60 000 Total equivalent units of conversion 44 000 52 000 Units completed and transferred out during December 50 000 50 000 The cost data for December were as follows: Work in process 1 December: Direct material $188 000 Conversion 88 800 Costs incurred during December: Direct material $328 000 Conversion 545 600