Equivalent production with losses (FIFO method)

Yeoman Ltd uses process costing and the FIFO method of valuation. The following information for last month relates to Process G, where all the material is added at the beginning of the process:

Required:

(a) Prepare the Process G Account for last month in £ and litres.
(10 marks)

(b) Identify TWO types of organization where it would be appropriate to use service (operation) costing. For each one suggest a suitable unit cost measure.
(2 marks)
ACCA Financial Information for Management

Transcribed Image Text:

Opening work in progress: Costs incurred: Normal loss: Actual output: Closing work in progress: 2000 litres (30 per cent complete in respect of conversion costs) valued in total at 24600 (16500 for direct materials; 8100 for conversion). Direct materials 99 600 for 12500 litres of input Conversion 155250 8 per cent of input in the period. All losses, which are incurred evenly throughout the process, can be sold for 3 per litre. 10000 litres were transferred from Process G to the finished goods ware- house. 3000 litres (45 per cent complete in respect of conversion costs).