A chemical company carries on production operations in two processes.

Materials first pass through Process I, where a compound is produced. A loss in weight takes place at the start of processing. The following data, which can be assumed to be representative, relates to the month just ended:

Required:
Determine, using the average cost method, the cost per kilo of compound in Process I, and the value of both work completed and closing work-inprocess for the month just ended.

Transcribed Image Text:

Quantities (kilos) Material input Opening work-in-process (half processed) Work completed Closing work-in-process (two-thirds processed) 200 000 40 000 160 000 30 000 Costs () Material input 75 000 Processing costs 96 000 Opening work-in-process - materials 20 000 -processing costs 12 000