Intermediate: Losses in process (weighted average)

A company producing a single product from one process has an opening work in process of 3200 units which were complete as to material but only 75% complete as to labour and overhead. These units at the end of September had been valued as follows:

Normal loss by evaporation was 500 units and 25 000 completed units were transferred to finished stock Work in process at the end of October was 2500 units which were complete as to material and half complete as to labour and overhead.
The average method of pricmg IS used.
You are required to prepare. for the month of October, a cost of production report or other suitable statement(s) for the operating management to show:

(a) production cost per unit in total and by element of cost,

(b) the total cost of production transferred to finished stock;

(c) the valuation of closing work in process in total and by element of cost.

Transcribed Image Text:

Direct materials () 14000 Direct wages Production overhead (200% on direct wages) 6500 13000 During the month of October a further 24 800 units were put into process and the following costs charged to the process: Direct materials Direct wages Production overhead () 96000 59125 118250