ABC company is a manufacturer of processed goods. In August 2022, in one process, there was no opening inventory, but 220 units of input were introduced to the process during the month, at the following cost:

$ Direct materials 700

Direct labour 600

Production overhead 500

Of the 220 units introduced, 180 were completely finished during the month and transferred to the next process. Closing inventory of 40 units was only 50% complete with respect to materials and conversion costs.

Required (1) Calculate total costs of the output (finished goods), and total costs of Work-in-progress (WIP). (6 marks)

(2) Draw the process account for this case. (4 marks)