As part of your role, you provide Helen with the costs of running her Cutting and Machining departments in July. Only skinny jeans were manufactured in July. All work is commenced in the Cutting Department and output is then transferred to the Machining Department. No direct material is added in the Machining Department but labour and overhead costs, including thread, rivets, buttons, and zippers are incurred uniformly throughout the process. Overhead is allocated based on 125% of direct labour cost. For the Machining Department, the following work in process information for 1 March 2020 is available: 100 units, 75% complete. Costs of this work in process include:

	$
Cutting department costs transferred in	3,330
Machining department costs
Direct labour	32,000

During March 200 units were completed and transferred to Administration for dispatch. Units transferred from the Cutting Department to the Machining Department were charged to Machining at $44.50 each. Direct labour costs in March for the Machining department were $32,000.

On 31 March 35 units were in process in Machining and these were estimated to be 45% complete.

Required:

For the Machining Department calculate, for the month of March, the cost of work completed and the cost of work in process as at 31 March 2020, using:

1. The weighted average cost method, and (8 marks)
2. FIFO. (12 marks)

Use the example in Figure 7.4 of the text and the information in the Background to Divine Denim, design a job cost record for a pair of custom-made jeans. (5 marks)

Presentation: Use Excel to prepare your answers to parts i and ii. Cut and paste your spreadsheet results and formula view into your word document. The formula view should include the column letters and the row numbers.