Refer to the information in Exercise4.17. Suppose Telemark-Kjemi determines standard costs of NKr 1050 per (equivalent) tonne

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Refer to the information in Exercise4.17. Suppose Telemark-Kjemi determines standard costs of NKr 1050 per (equivalent) tonne of transferred-in costs, NOK 390 per (equivalent) tonne of direct materials and NOK 640 per (equivalent) tonne of conversion costs for both opening work in progress and work done in the current period.

Required Do Exercise4.17 using the standard-costing method.

Exercise4.17

Transferred-in costs, weighted-average method (35–40 minutes)
Telemark-Kjemi AS manufactures an industrial solvent in two departments – mixing and cooking.
This question focuses on the Cooking Department. During June 2022, 90 tonnes of solvent were completed and transferred out from the Cooking Department. Direct materials are added at one point in time during the process. Conversion costs are added uniformly during the process.
Telemark-Kjemi uses the weighted-average process-costing method. The following information about the actual costs for June 2022 is available.image text in transcribed

Required 1 Calculate the equivalent tonnes of solvent completed and transferred out and in closing work in progress for each cost element.
2 Calculate cost per equivalent unit for opening work in progress and work done in current period.
3 Summarise total costs to account for and assign these costs to units completed (and transferred out) and to units in closing work in progress using the weighted-average method.

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Management And Cost Accounting

ISBN: 9781292436029

8th Edition

Authors: Alnoor Bhimani, Srikant Datar, Charles Horngren, Madhav Rajan

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