Process costing FIFO method (no losses in process) and apportionment as joint cost

(a) The following information relates to the final process in a factory for the month just ended:

There is no loss of units in the process. The company uses the FIFO method for charging out the costs of productioin.
Required:
Prepare the process account for the period.
(11 marks)

(b) Another process in the factory produces joint products (M and N). Each joint product is further processed to produce saleable output.
The following data is available for a period:

Required:
(i) Apportion the joint costs for the period using the net realizable value method.
(4 marks)
(ii) Contrast the accounting treatment of joint products with that applied to by-products.

Transcribed Image Text:

Units: Opening work-in-progress, 500 Transfers in from previous process, 6500 Closing work-in-progress, 600 Costs (): Opening work-in-progress, 1527 Transfers in: Previous process costs, 14625 Materials added, 5760 Conversion costs, 3.608 The degree of completion of work-in-progress (WIP) was: