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Lee Krusek Sdn. Bhd. is a local manufacturing company that Specialises in the production of cast iron cookware which requires processing through two production departments.
Lee Krusek Sdn. Bhd. is a local manufacturing company that Specialises in the production of cast iron cookware which requires processing through two production departments. The rst department in the process is a Casting department. where the cookware is initially created. The cookware then moves to the Enamelling department for further work. and these per-unit costs will be carried along with the cookware into that department. where additional costs will be added. In Enamelling department. direct materials are added when the process is 90% complete while conversion costs are added evenly during the process. As work in the Casting department is completed. each unit is immediately transferred to Enamelling department. As each unit is completed in Enamelling department. it is immediately transferred to Finished Goods. Lee Krusek Sdn. Bhd. uses the FIFO method of process costing. Data for Enamelling department for November 2021 are as follows: Units In Coats Hateala Coal: (RM) (RI!) (RM) Work in process. November 1' 6.?50 2.593.688.00 m 751,914.00 _ m _ ' Degree of completion: transferred-in costs. ?%; direct materials. 1%; conversion costs. 70% " Degree of completion: transferred-in costs. 7%: direct materials. '?%: conversion costs. 60% _ a. Determine and provide justification for your answer on the percentage of completion for: i. transferred-in costs and direct materials in beginning work in process inventory. ii. transferred-in costs and direct materials in ending work in process inventory. [4 Marks} b. For each cost category. compute equivalent units in Enamelling department. [8 Marks] c. For each cost category. summarise total Enamelling department costs for November 2021. calculate the cost per equivalent unit. and assign total costs to units completed (and transferred out) and to units in ending work in process. {3 Marks]
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