Paper Mill process costing - February 2020

Opening WIP (units) 20,050

Opening WIP - raw materials ($) $18,000

Opening WIP - Conversion costs ($) $6,000

Units transferred in 1,050,000

Cost of Units transferred in $600,000

Direct Materials added ($) $19,500

Conversion Costs added ($) $20,000

Costs transferred in Complete % 100%

Materials Complete %100%

Conversion Costs % 45%

Units completed 900,000

a) Calculate the closing WIP (units and $) and the value of completed goods for the month ended 29 February 2019.

b) Choose another method of process costing, describe it, and compare and contrast between it and the Weighted Average Cost Method.

c) Describe what is meant by 'relevant range', what might be one of the impacts for this factory if it is breached?