QUESTION 1 (9 marks)

Pieworld Ltd. manufactures a single product, which passes through the Baking Department and Cooling Department.

Manufacturing begins in the Baking Department. All units are then transferred to Cooling Department.

In the Cooling Department, further materials are added and processed until completion, and transferred to the finished goods inventory. Overhead is allocated on the basis of 120% of direct labour cost.

Work in process in the Cooling Department on 1 Oct was 80,000 units (Materials : 60% complete; Conversion : 70% complete). The costs included in these units were as follows :

Baking Department costs

Cooling Department : Direct materials

: Direct labour : Overheads

$856,000

$672,000 $1,120,000 $?

During the month, the Cooling Department completed and transferred 230,000 units to finished goods inventory. The ending work in process for Cooling Department was 70,000 units (Materials : 50%; Conversion : 40%).

Units transferred in from Baking in Oct were charged at $11.50 per unit. Cooling Departments costs in Oct were :

Materials added during the month Direct labour for the month Overheads

Required :

$3,255,000 $5,050,000 $?

(a) Prepare the Cooling Department production cost report for the month of Oct 2021 using (round up to 2 decimal place) :

(i) Weighted Average method

(ii) FIFO method

Note : You may prepare the production cost report using WORD or EXCEL.

(9 marks)

Please solve this question ..

QUESTION 1 (9 marks) Pieworld Ltd. manufactures a single product, which passes through the Baking Department and Cooling Department Manufacturing begins in the Baking Department. All units are then transferred to Cooling Department In the Cooling Department, further materials are added and processed until completion, and transferred to the finished goods inventory. Overhead is allocated on the basis of 120% of direct labour cost. Work in process in the Cooling Department on 1 Oct was 80,000 units (Materials: 60% complete; Conversion : 70% complete). The costs included in these units were as follows: Baking Department costs $856,000 Cooling Department Direct materials $672,000 : Direct labour $1,120,000 : Overheads During the month, the Cooling Department completed and transferred 230,000 units to finished goods inventory. The ending work in process for Cooling Department was 70,000 units (Materials: 50%; Conversion : 40%). Units transferred in from Baking in Oct were charged at $11.50 per unit. Cooling Department's costs in Oct were : Materials added during the month $3,255,000 Direct labour for the month $5,050,000 Overheads S? Required: (a) Prepare the Cooling Department production cost report for the month of Oct 2021 using (round up to 2 decimal place) (0) Weighted Average method (11) FIFO method Note : You may prepare the production cost report using WORD or EXCEL. (9 marks)