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.