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QUESTION 1
(20 Marks)
REQUIRED
Study the information provided below and then prepare the Process Cost Report for Process 2 using the weighted average method.
INFORMATION
Dehli Ltd uses two processes to manufacture takkies. The following details are applicable to Process 2 for July 2018:
Production details
Units
Units of incomplete work (opening)
45 000
(100% complete i.r.o. materials; 40% complete i.r.o. conversion costs)
Units received from the previous process
180 000
225 000
Units completed and transferred
(135 000)
Units of incomplete work (closing)
90 000
(100% complete i.r.o. materials; 70% complete i.r.o. conversion costs)
Details in connection with costs:
R
Incomplete work (opening)
720 000
Costs of previous process
567 000
Direct materials
99 000
Conversion costs
54 000
Costs incurred during July:
1 548 000
Transferred from previous process
1 017 000
Direct materials
189 000
Conversion costs
342 000
2 268 000
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