EXERCISE / QUESTION A particular company makes reusable cloth bags. It uses a uniform and continue manufacturing costing system with the AVERAGE COST method (there are losse Here is the data from Workshop 2 for the month of April 2014 As of March 31, 2014, Shop 2's work-in-process inventory included: 8400 units advanced at 10% The book value of this inventory is broken down as follows: 78400 $ shop 1 contents 33600 $ processing cost of shop 2 During the month of April, Shop 2 received: 33280 units from Shop 1 which were worth $232960. The period costs for Shop 2 in April were: 24000 $ raw materials or MP 156000 $ processing or transformation - At the end of April: 33320 were completed (delivered to finished goods inventory) 980 units were in process, 40% advanced. We are adding the raw material from shop 2 at 20% completion Inspection is done at 25% progress, and losses are expected to be 8% of good production. Complete the following boards. MP: raw material or unprocessed material SPC start Received unit Total Equivalent unit upstream MP Physical units Transformation Complete units Expected losses Other losses SPC end TOTAL TOTAL upstream MP transformation Costs SPC start Cost of the period TOTAL UPSTREAM MP TRANSFORMATION Cost price upstream MP Transformation Production report Complete units Expected losses Other losses SPC end TOTAL EXERCISE / QUESTION A particular company makes reusable cloth bags. It uses a uniform and continue manufacturing costing system with the AVERAGE COST method (there are losse Here is the data from Workshop 2 for the month of April 2014 As of March 31, 2014, Shop 2's work-in-process inventory included: 8400 units advanced at 10% The book value of this inventory is broken down as follows: 78400 $ shop 1 contents 33600 $ processing cost of shop 2 During the month of April, Shop 2 received: 33280 units from Shop 1 which were worth $232960. The period costs for Shop 2 in April were: 24000 $ raw materials or MP 156000 $ processing or transformation - At the end of April: 33320 were completed (delivered to finished goods inventory) 980 units were in process, 40% advanced. We are adding the raw material from shop 2 at 20% completion Inspection is done at 25% progress, and losses are expected to be 8% of good production. Complete the following boards. MP: raw material or unprocessed material SPC start Received unit Total Equivalent unit upstream MP Physical units Transformation Complete units Expected losses Other losses SPC end TOTAL TOTAL upstream MP transformation Costs SPC start Cost of the period TOTAL UPSTREAM MP TRANSFORMATION Cost price upstream MP Transformation Production report Complete units Expected losses Other losses SPC end TOTAL
