Model: Average cost method statement of cost preparation
Opening WIP: 5000 units
|
Materials:100% of degree of completion |
= 12,500 |
|
Labour: 60% ” |
= 7,500 |
|
Overhead: 60% ” |
= 3,750 |
Units introduced into this process: 20,000 units.
There are 5,000 units in this process, and the stage of completion is estimated to be:
|
Materials: |
100% |
|
|
Labour: |
50% |
|
|
Overhead: |
50% |
20,000 units are transferred to the next process.
The process costs for the period are:
|
Materials |
2,37,500 |
|
Labour |
1,50,000 |
|
Overhead |
75,000 |
You are required to find the value of:
(v) Output transferred and
(vi) Closing WIP