Question 8

Jeddah Company produces a consumer item Mashroob which passes through two departments. The company uses a process cost method. Cost data of the company for the month of September is as under: Depart. A Depart. B Material 70,000 50,000 Labour 35,000 25,000 Factory overhead 35,000 25,000 There was no beginning inventories. Units started in process 50,000. Units in process September 30: 20,000 25% complete in Department A 10,000 50 % complete in Department B

Required:

a) Equivalent Production Unit b) Unit Cost at Depart 2,

c) Cost of Units transferred to Finished goods d) Cost of Work in Process at the end of June