Question
AMD Incorporation manufactures micro-processors. The product costing system of AMD Incorporation has a single direct costing category (Direct Material) and a single indirect costing category
AMD Incorporation manufactures micro-processors. The product costing system of AMD Incorporation has a single direct costing category (Direct Material) and a single indirect costing category (Conversion Cost). Direct materials are added when the forming department process is 10% complete. Conversion costs are added evenly during the forming department process.
AMD Incorporation uses weighted average method of process costing. Consider the following data for forming department:
Physical Unit Direct Material Conversion Costs
Work in process March 1 (Degree of completion: Direct Material 100% Conversion cost 40%) | 12000 | Tk 30000 | Tk 8500 |
Started during March 2015 | 88,000 | |
|
Completed during March 2015 | 80,000 | |
|
Work in process March 30 (Degree of completion: Direct Material 100% Conversion cost 25%) | 20,000 | |
|
Cost added during March 30 | | Tk 280,000 | Tk 170,000 |
Summarize total forming department cost for March 2019 and assign these costs to units completed and to units in ending work in process. (Use Average method).
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