Question
Al Saad Company Process costing Al Saad Company manufactures a product that passes through two departments, Mixing and Bottling. All materials are added at the
Al Saad Company Process costing Al Saad Company manufactures a product that passes through two departments, Mixing and Bottling. All materials are added at the beginning of each process. Labor and manufacturing overheads (Conversion costs) are incurred uniformly throughout each process. The company uses the weighted average method in their process costing system. Production and cost data for the Mixing Department during June 2021 are presented below: Production data June 2021 Beginning work in process units -0- Units started into production 22,000 Ending work in process units 2,000 Percent complete ending work in process with respect to conversion costs. 40% Cost data Direct Materials $198,000 Direct Labor $53,600 Manufacturing Overhead $112,800 Total $364,400 Required: (a) Prepare a schedule showing physical units of production (1 marks) (b) Determine the equivalent units of production for materials and conversion costs (1 marks) (c) Compute the unit cost of production (1 marks) (d) Determine the costs to be assigned to the units transferred out and in process for June (1 marks) (e) Prepare a production cost report for the Mixing Department for the month of June (1 marks)
Al Saad Company - Process costing Al Saad Company manufactures a product that passes through two departments, Mixing and Bottling. All materials are added at the beginning of each process. Labor and manufacturing overheads (Conversion costs) are incurred uniformly throughout each process. The company uses the weighted average method in their process costing system. Production and cost data for the Mixing Department during June 2021 are presented below: June 2021 -0- 22,000 2,000 40% Production data Beginning work in process units Units started into production Ending work in process units Percent complete - ending work in process with respect to conversion costs. Cost data Direct Materials Direct Labor Manufacturing Overhead Total $198,000 $53,600 $112,800 $364,400 Required: (a) Prepare a schedule showing physical units of production (1 marks) (b) Determine the equivalent units of production for materials and conversion costs (1 marks) (c) Compute the unit cost of production (1 marks) (d) Determine the costs to be assigned to the units transferred out and in process for June (1 marks) (e) Prepare a production cost report for the Mixing Department for the month of June (1 marks)Step by Step Solution
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