Question
Romagna plc manufactures a product that passes through two processes: mixing and packaging. All manufacturing costs are added uniformly in the mixing department. Information for
Romagna plc manufactures a product that passes through two processes: mixing and packaging. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for April is as follows:
Work in progress, April 1 Units (60% complete) Direct materials
Direct labour Overhead
5,000 20,000 24,000 4,000
During April, 80,000 units were completed and transferred to packaging.
The following costs were incurred by the mixing department during the month:
Direct materials Direct labour Overhead
180,000 200,000 59,200
At April 30, 12,000 units that were 10% complete remained in the mixing department. Romagna plc use the weighted average method to allocate costs to products.Requirement
a) Compute Romagna plc'sequivalent units of production for April.
b) ComputeRomagna plc's total costs to account for in April.
6 Marks
9 Marks
c) DetermineRomagna plc'stotal cost per equivalent unit of production, the cost of goods transferred to the packaging department, and the cost of the ending work in progress for the mixing department in April.
9 Marks
d) Discuss the main differences between the FIFO and weighted average methods in process costing.
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