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[1 marks] QUESTION 2 [20 marks] Kayumanis Industries Sdn Bhd (KISB) produces wooden trays involving two processing departments; Department A and Department B. Weighted-average method
[1 marks] QUESTION 2 [20 marks] Kayumanis Industries Sdn Bhd (KISB) produces wooden trays involving two processing departments; Department A and Department B. Weighted-average method is used to compute equivalent units. In Department A; all materials are added at the beginning of the process. On 1st November 2020, Department A had work in process inventory of 2,000 wooden trays. During November, it started new production of 22,000 wooden trays. At the end of the month, 2,500 wooden trays were 60% completed. The costs information during November for Department A are as follows: RM Beginning work in process: Direct materials 1,900 Conversion costs 2,850 Current costs incurred during November Direct materials 5,300 Conversion cost( 60% direct labour, 40% overhead costs) 6,350 Required: (a) Prepare a production cost report for Department A for the month ended 30th November 2020. [16 marks] (b) Prepare journal entries to record current costs and transferred out costs of Department A for November 2020. [4 marks]
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