Q4. KCC Ltd. uses a process costing system for its sole processing department. There were 35,000 units in the beginning WIP inventory for June and 325,000 units were started in June. The beginning WIP units were 50% complete and the 30,000 units in the ending WIP were 40% complete. All materials are added at the start of processing.

You are required to:

a) Compute the no. of units started & completed.

b) Compute the EUP for DM and CC using FIFO and WA methods.

c) Calculate total manufacturing cost/EUP under both methods with the following details:

	FIFO	WA
Direct Material Cost	SAR 850,000	SAR 1,000,000
Conversion Cost	SAR 1,025,000	SAR 1,350,000

Answer: