Question 1

PART B Biotech Sdn Bhd produces Covid-19 vaccine which it supplies to major hospitals. The production of the vaccine goes through two processing department, Mixing and Quality Control. In the Quality Control Department, conversion cost is added evenly during the process. Detection of spoiled units are at the end of the process. All completed work is transferred to the next department. The data below is for the month of December 2021. The transferred in cost is the total cost of good units completed and transferred out in December from mixing department.

Physical Transferred-in Direct Conversion Quality Control Units Cost Materials Cost (RM) (RM) (RM) W.I.P, beginning Inventory, Dec 1 18,900 49,000 0 34.440 Degree of completion of beginning 100% 0% 60% W.I.P Units started on December 35,700 Units completed and transferred out 39,900 W.I.P, ending inventory, Dec 31 11.900 Degree of completion of ending W.I. 100% 0% 30% P Cost added in December: 14.945 76,846 Transferred in from Assembly 142,800 Normal spoilage (%) of good units 5% Degree of completion of normal 100% 100% spoilage Degree of completion abnormal 100% 100% spoilage