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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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