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During July, the following costs were incurred: Materials (30,000 units) $24,900 Labour and overheads $20,075 At the beginning...

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Accounting

During July, the following costs were incurred:
Materials (30,000 units) $24,900
Labour and overheads $20,075
At the beginning of July, there were 15,000 units of work inprogress valued as follows:
Materials (100% complete) $9,000
Labour and overheads (40% complete) $1,250
At the end of July, there were 5,000 units of work-in-progress.They were 100% complete for materials
and 50% complete for labour and overheads.
Using both FIFO approach and Weighted Average approach:
(a) calculate how many units were completed during July
(b) calculate the cost per unit
(c) value the finished items and the closing work-in-progress
(d) prepare a Process Account. (Note: assume no losses)

Answer & Explanation Solved by verified expert
3.6 Ratings (326 Votes)
Solution FIFO Approach a Computation of Equivalent unit FIFO Particulars Physical units Material Conversion Units to be accounted for Beginning WIP Inventory 15000 Units started this period 30000 Total unit to be accounted for 45000 Units Accounted for Units completed and transferred out From beginning inventory Material 0 Conversion 60 15000 0 9000 Started and completed currently 25000 25000 25000 Units in ending WIP Material 100 Conversion 50 5000 5000 2500 Total units accounted for 45000 30000 36500 b Computation of Cost per Equivalent unit Particulars Total cost Material Conversion Current    See Answer
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