You have been given the following information for KLM Manufacturing:

Direct materials used $53,000

Closing finished goods inventory 34,000

Depreciation of factory equipment (a cost) 11,000

Factory repairs and maintenance 16,000

Opening WIP inventory 19,000

Direct labour 59,000

Indirect labour 23,000

Indirect materials 13,000

Other manufacturing overhead 4,000

Tax on factory building (a cost) 3,000

Marketing expenses 37,000

Opening finished goods inventory 27,000

Factory electric power 17,000

Closing WIP inventory 26,000

Depreciation of factory building 9,000

Office expenses 43,000

Question

i. Calculate the Cost of Goods Manufactured;

ii. Calculate the Cost of Sales.

[Note: Some costs are Not Relevant]

2. QRS Inc. produces component parts that are used in laptop computers. One part, the hard-drive, is manufactured in a single processing department. No hard-drives were in process on 31 May, and QRS started production on 12,000 units during June. Completed production for June totalled 9,900 units. The 30 June WIP was 20% complete as to direct materials and 30% complete as to conversion costs. Direct materials costing $6,192 were placed in production during June, and direct labour of $5,100 and factory overhead of $2,271 were applied to the manufacture of the hard-drives.

Question:

i. Calculate the number of:

a. equivalent units of production, and

b. the equivalent unit costs for June.

ii. Calculate the total cost of:

a. units completed and transferred to finished goods inventory and

b. units still in process at 30 June.