Question
B&W Limiteds mixing department had 40000 units in work in process on 1 June. There units were 38% complete with respect to conversion cost. Direct
B&W Limiteds mixing department had 40000 units in work in process on 1 June. There units were 38% complete with respect to conversion cost. Direct materials are added at the beginning of the production process, while conversion costs are incurred uniformly throughout the process. An additional 190000 units were started during June, and 50000 units were in work in process on 30 June. The units in work in process on 30 June were 55% complete with respect to conversion.
Costs incurred in the mixing department for June were as follows:
| Work in Process 1 June | Costs incurred during June | Total |
Direct Material | $110500 | $430000 | $540500 |
Conversion | 22375 | 320000 | 342375 |
| 132875 | 750000 | 882875 |
Required:
- Analysis of physical flow of units (2 marks)
- Calculation of equivalent units (2 marks)
- Calculation of units cost (4 marks)
- Analysis of total costs (4 marks)
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