Intermediate: Cost control PC Manufacturing Company operates a process costing system and the following information relates to process A for the month of March:

Opening work in process of 1000 units 40% complete, consisting of

£17 400 for direct materials and £10 000 for conversion costs.

Production completed for March was 8200 units with materials added for the month of £162 600 and conversion costs in the month of £173 920.

Closing work 1n process was 800 units which was 20% complete.

There are no losses in process. All materials are introduced at the start of the process and conversion costs are incurred uniformly throughout the process. Process A 1s the initial process and the completed production is then transferred to process B.

You are required:

(a) To prepare a schedule of equivalent production and cost per unit and the process account for the month of March.

(b) Assuming that the company operates a standard cost system using the following standards per finished unit:

Direct materials £20 Conversion cost £23 Prepare a performance report for the month of March showing the total variances only for the current performance