Intermediate: Equivalent production with no losses Product B is made by means of three processes. Material is put into process at the start of process 1 and the output transferred to process 2. The output of process 2 is transferred to process 3 and the completed product of process 3 is transferred to finished goods stock.

The data for the week ended 31 October 1980 relating to product B are given below:

No units were lost in production and the weighted average basis of pricing is to be used You are required to prepare for the week ended 31 October 1980.

(a) the three manufacturing process accounts, showing in each:
(i) the unit cost;
(ii) the value of work in process;
(iii) the cost of production transferred;

(b) the finished goods stock account

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Process Description 1 Work process, at start 2 Input: Material Labour and overhead State of Cost Units completion () (%) 20 50 270 270 3240 840 530 1540 Output: Transferred to process 2 290 Input: Material added Labour and overhead Output: Transferred to process 3 240 Work in process, at end: Material added Labour and overhead 3 Work process, at start Transferred cost Labour and overhead 990 50 (50 50 180 90 2025 33 105 1015 Input: Labour and overhead Output: Transferred to finished goods stock 300 Work in process, at end 30 66 Finished goods: Stock at start 100 2700 Sold 324