Because of your great work on the Strategy Committee with O Sole Mio Pasta Sauces you have been seconded to a role as management accountant for the O Sole Mio Division of Jupiter Australasia Ltd. Your first task is to prepare month end product costing for O Sole Mio pasta sauce. The factory responsible for manufacturing these products operates continuously 24 hours a day, 7 days a week and utilities a process costing system.

The process for manufacturing O Sole Mio sauce is to first add all of the raw ingredients and condiments which are mixed and then put into glass jars and cooked in steam ovens. For accounting purposes all raw material and packing is assumed to be added at the start of the continuous process. The conversion costs of manufacturing are assumed to occur evenly across the whole of the production cycle which takes several hours.

several hours. The following information relates to the production of 'O Sole Mio' pasta sauce during the month of June 2020. The Stock Keeping Unit (SKU) adopted for inventory purposes is a single 450 ml jar Work-in-Process: June 1, 2020 Raw materials Conversion Work-in-Process: June 30, 2020 A total of 535,800 SKUS were commenced during May and the following costs were incurred. Costs incurred during May 2020: Raw materials Conversion Required: Stage of completion 100% 15% $803,000 $1,078,000 21,900 SKUs Value $32,900 $7,300 36,750 SKUs 65% Complete