Duddon Ltd makes a product that has to pass through two manufacturing processes, I and II. All the material is input at the start of process I. No losses occur in process I but there is a normal loss in process II equal to 7% of the input into that process. Losses have no realisable value. 

Process I is operated only in the first part of every month, followed by process II in the second part of the month. All completed production from process I is transferred into process II in the same month. There is no work in progress in process II.
Information for last month for each process is as follows:

Required
1. Calculate for process I:
a. The value of the closing work in progress; and
b. The total value of the units transferred to process II.
2. Prepare the process II account for last month.
3. Identify TWO main differences between process costing and job costing.

Transcribed Image Text:

Process I Opening work in progress 200 units (40% complete for conversion costs) valued in total at £16 500 Input into the process 1900 units with a material cost of £133 000 £93 500 Conversion costs incurred Closing work in progress 50% complete for conversion costs Process II Transfer from process I Conversion costs incurred 1800 units £78 450 1650 completed units were transferred to the Finished Goods warehouse.