Manchester Limited makes security alarms. At the beginning of March, following demands from shops over the summer period, there is no opening work in progress. The cost of production during March was as follows:

Direct material 10 725

Direct labour 6 600

Production overhead 3 900

Security alarms completed 2 750

Security alarms in progress 500

Work in progress is complete regarding materials but is 50% complete as it relates to direct labour and production overheads.

i. Complete the schedule below to calculate the cost per security alarm for the first month of production. (7 marks)

ii. Calculate the month-end valuation for work in progress. (3 marks)

Cost Elements Costs Completed Units Work Units Incomplete % Progress Equivalent Units Total Equivalent Units Cost Per Unit WIP Valuation

A B C D E F G H

$ C x D B + E A/F $ E x G $

Direct material

Direct labour

Production overhead

Total

B. Discount House sold bottled water and had the following transactions for the month of June. Stock on hand 2018 June 01 was 45 units @ $200.

Purchases Sales June

02 75 units @ $205 J june 06 55 units @ $250

June 08 30 units @ $210 June 10 40 units @ $260

June 15 20 units @ $215

june 22 0 units @ $225 june 23 85 units @ $270

Calculate closing stock using FIFO and AVCO methods.