Question
PROCESS COSTING Jen Company operates several production processes. The following information relates to process 2 during the recently completed period. Opening WIP 1,200 units valued
PROCESS COSTING
Jen Company operates several production processes. The following information relates to process 2 during the recently completed period.
Opening WIP 1,200 units valued at $3009 and were 100% completed except for conversion costs which were 50% completed.
During the period 112,000 units valued at $191,520 were transferred from process 1 and 105,400 units were completed and transferred to finished goods. Other costs incurred were:
Raw material added- $47 880
Conversion Cost- $63,176
Closing WIP in process was 1600 units and was 100% complete apart from Process 2 conversion costs which were 75% completed.
Normal wastage of materials (including product transferred from process 1) that occurs in the early stage of Process 2 (after all materials have been added) is expected to be 5% of input. Process 2 conversion costs are all apportioned to units of good output. Wastage materials have no saleable value.
Required:
a.Statement of Production and Cost
b.Process 2 account using the FIFO principles.
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