Clay Products Ltd produces handmade decorative vases. A process costing system is used. All materials are introduced at the start of the process. Labour costs are incurred uniformly throughout the production process. The following information is available for the month of July:
|
Work in progress at 1 July (60% complete) |
2,000 units |
|
Work in progress at 31 July (30% complete) |
1,200 units |
The value of work in progress at 1 July is as follows:
|
|
£ |
|
Direct materials cost |
1,700 |
|
Direct labour costs |
1,900 |
|
|
3,600 |
During the month of July, 7,000 vases were transferred to finished goods stock. Materials introduced cost £14,700. Labour costs incurred were £12,820.
Required
Using the method of weighted averages, prepare a process cost statement for the month of July showing unit costs, the value of finished goods and the value of work in progress at the end of the month.