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Matoyo Ltd manufactures large metal waste containers. These containers are produced in two processing departments, Fabricating and Painting. In both departments, all the direct materials

Matoyo Ltd manufactures large metal waste containers. These containers are produced in two processing departments, Fabricating and Painting. In both departments, all the direct materials are added at the beginning of the process, labour and overhead costs are applied evenly throughout the entire process.

Matoyo uses process costing and had the following production and cost information for the Fabricating Department for the month of April.

Units in work in process at 1 April, 60% complete 10,000

Units started during April 65,000

Units completed and transferred out in April 60,000

Beginning Incurred

Work in Process ($) in April ($)

Direct materials 9,090 27,000

Direct labour 2,490 7,740

Manufacturing overhead costs applied 5,730 18,060

At the end of April, units remaining in work in process in the Fabricating Department were 20% complete.

Required:

a) Prepare a cost of production report for the Fabricating Department for the month of April.

b) Based on the production report prepared for Fabricating Department, determine the following:

i) number of equivalent units of direct materials and conversion cost;

ii) cost per equivalent unit for direct materials, conversion and the departments production;

  1. value of ending work in process

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