The following information is given for process I for B Ltd. The average method of pricing work in progress is used. Work in progress in January:
|
Rs |
|
|
Materials on 500 units |
900 |
|
Labour on 500 units |
1,000 |
|
Factory overheads on 500 units |
400 |
|
Total |
2,300 |
Production costs for January:
|
Rs |
|
|
Materials |
7,800 |
|
Labour |
9,150 |
|
Factory overheads |
6,125 |
|
Cost for January |
23,075 |
Production completed during January:
500 units from 1 January, work in progress
2,000 units from products received during January
2,500 total units completed
Work in progress on 31 January: 400 units, 25% completed as to material, labour and overhead.
Calculate process I account for January.