Question
Jones Limited is a manufacturer of industrial paint. It uses a weighted average method of process costing. Materials are added at the beginning of the
Jones Limited is a manufacturer of industrial paint. It uses a weighted average method of process costing. Materials are added at the beginning of the process but conversion costs occur uniformly throughout the process. The following data has been compiled for the month of June.
Work in process, 1 June 200 000 units | 40% complete | 200 000 units |
Work in process, 30 June | 70% complete | 60 000 units |
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Units started during June | 300 000 units |
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Cost of Work in Process 1 June |
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Direct Materials | $450,000 |
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Conversion Costs | $ 90,000 | $ 540,000 |
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Costs incurred during the month of June |
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Direct material | $ 910 000 |
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Conversion costs | $ 874 000 | $ 1,784,000 |
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Required: Show all workings
- Calculate the cost of goods completed and transferred out for the month of June.
2. Calculate the cost of work in process inventory as at 30 June
Please provide the solution & process to calculate this problem
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