Question
Crunch Ltd manufacture potato chips and the business applies a weighted average process costing system. All direct materials are added at the beginning of the
Crunch Ltd manufacture potato chips and the business applies a weighted average process costing system. All direct materials are added at the beginning of the process and conversion costs are incurred evenly throughout production. The information for June's activities is given below:
Work in process 1 June - 20,000 units |
|
Direct material (100% complete) | $44,000 |
Conversion cost (20% complete) | $9,000 |
Balance of work in process, 1 June | $53,000 |
|
|
Units started during June | 200,000 units |
Units completed during June and transferred out to finished goods inventory | 160,000 units |
Work in process , 30 June: |
|
Direct materials (100% complete) |
|
Conversion (33 % complete) |
|
Costs incurred during June: |
|
Direct material | $396,000 |
Conversion costs: | $316,800 |
Direct labour $105,600 |
|
Manufacturing overhead $211,200 |
|
Total production costs incurred during June | $712,800 |
Required: (where necessary round off all figures to two decimal places)
Answer the following question using the weighted average method (WACM). Show all workings. Please use as much of the table below as you need, you can also delete or add rows and columns as needed. (Click the cursor inside a cell to see the table row and column options appear).
a. Calculate the equivalent units for the company and then calculate the unit cost of the product
b. Crunch Ltd is looking at improving its strategic performance and is keen on introducing some non-financial performance measures to its operations. Can you advise the accountant of THREE appropriate non-financial indicators and explain to the accountant how these indicators would be used to measure performance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started