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Question 3 KERTAS Co. manufactures and supplies paper to wallpaper manufacturers. KERTAS has four processes that include mixing, rolling, and cutting. During February 2022, the

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Question 3 KERTAS Co. manufactures and supplies paper to wallpaper manufacturers. KERTAS has four processes that include mixing, rolling, and cutting. During February 2022, the mixing department started and completed mixing 4,500 rolls of paper. Additional 500 rolls were started but did not finish the mixing, which were 20% complete with respect to both direct materials and conversion work at the end of February 2022. Both are incurred evenly throughout mixing process. Below is some additional information for the mixing department during February 2022: 1. 2. 3. 4. There are no opening balance for mixing department Direct materials were 5,520 Direct labours were 580 Manufacturing overhead cost were 5,860 Required: (a) Using Weighted Average Method, prepare the production cost report for Mixing Department. (20 marks) (b) Discuss how the production cost report can help managers make decisions regarding controlling costs. (20 marks) (Total: 40 marks)

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