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Prepare the Process Cost Report for Process 2 using the FIFO method.
INFORMATION
Penrite Ltd uses two processes to manufacture pens. The following details are applicable to Process 2 for March 2018:
Production details
Units
Units of incomplete work (opening)
(100% complete i.r.o. materials; 40% complete i.r.o. conversion costs)
16 000
Units received from the previous process
64 000
Units completed and transferred
48 000
Units of incomplete work (closing)
(100% complete i.r.o. materials; 60% complete i.r.o. conversion costs)
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Details in connection with costs:
R
Incomplete work (opening):
256 000
Costs of previous process
201 600
Direct materials
35 200
Conversion costs
19 200
Costs incurred during March 2018:
550 400
Transferred from previous process
361 600
Direct materials
67 200
Conversion costs
121 600
806 400
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