subject :cost accounting

chapter: Process costing and Hybrid costing Systems

answer and explain it in detail

Zyon Industries uses Weighted-Average process costing in accounting for its production activities. Materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. The production records for January indicate the following information: Quantities Beginning inventory in units (70% Complete) 15,000 Units started during month 120,000 Transferred to finished goods 85,000 Ending inventory in units (50% Complete) 20,000 Beginning inventory costs Materials cost $2,000 Direct labour cost $2,500 Factory overhead $6,200 Current month costs Materials cost $170,200 Direct labour cost $30,800 Factory overhead $58,300 Required: 1. Design a cost of production report worksheet for Zyon that can be used by the company at the end of each month. Your worksheet should include a data section. Use the January data for the input. 2. Test your model using the following data for October. Quantities Beginning inventory in units (35% Complete) 13,000 Units started during month 105,000 Transferred to finished goods 111,000 Ending inventory in units (20% Complete) 6,000 Beginning inventory costs Materials cost $2,000 Direct labour cost $2,500 Factory overhead $6,200 Current month costs Materials cost $155,200 Direct labour cost $23,800 Factory overhead $65,200