You are on page 1of 5

Roman Ltd.

The following data have been compiled for Roman Ltd's Finishing Department for the month of Mar 2013.
Work in process, 1 Mar - 50,000 units :
Direct Material: 100% complete, cost of
Mixing department
Finishing department direct material
Conversion: 30% complete, cost of
Finishing department direct labour
Finishing department overheads
Units completed during Mar and transferred out:

$1,100,000
$850,000
$150,000
?
140,000 units

Work in process, 31 Mar - 40,000 units:
Direct material: 100% complete
Conversion : 30% complete
Cost incurred during Mar :
Material added
Direct labour
Overheads

$3,055,000
$3,900,000
?

Information:
(i)
Additional materials are added when processing is 20% complete in Finishing department.
(ii)
Conversion activity occurs uniformly throughout the production process.
(iii)
Overhead is allocated on the basis of 110% of direct labour cost.
(iv)
Units transferred in from Mixing were charged at $28.00 per unit.

.the month of Mar 2013.

000 40.000.00 4.A 29 30 B C D E F G Roman Ltd.000.905.000 21.000 140.00 14.441.00 8.000 152.98 Assignment of cost : Cost of goods completed and transferred-out Cost remaining in Mar 31 work in process inventory Transferred-in: $ 1.000 41 42 43 Work in process.000 180.000.000 26.000.78 Direct Material: $ 671.00 17.00 850. 31 Mar Total units accounted for Total equivalent units 140.150.37 Conversion: Total cost accounted for $ 14.000.00 3.592.265.000 180.000.000 130.95 .000.505.00 180.055.740.557. Production Cost Report for Mar 2013 : Finishing Department 31 32 33 Work in process.000 140.190.000.000 25% 140.00 3.000 40.777.333.48 17.000 180.33 103.558.150. 1 Mar 34 Unit transferred-in during Mar 35 Total units to account for Physical Units Percentage of Completion with Respect to Conversion Equivalent Units Transferred-in Direct Material 50.00 180.053.000.000 12.000 100% 30% Conversion 36 37 38 39 40 Units completed & transferred out Work in process.33 $ 867.100.000 180.447.000.000.000 55.00 8. 1 Mar 44 Current period 45 Total costs to account for 46 47 48 49 50 51 52 53 54 55 56 57 Equivalent units Costs per equivalent unit ($) Transferred-In ($) Direct Material ($) Conversion ($) 1.52 $ $ 2.00 3.000.885.000 40.69 152.000.640.00 Total ($) 2.00 315.

(b)(i) Assumed that conversion costs of Finishing Department in Mar increased by 20%.066.125.76 F G . New conversion cost per equivalent unit New total cost per equivalent unit New cost of units completed and transferred-out $ $ 66.A 58 59 60 61 62 63 64 B C D E Q1.73 $ 16.73 114.

000.000.00 165. 1 March.000.00 per unit.000 units 40.Finishing overheads $ $ $ $ 1.900. (a)(ii) PROCESS COSTING SPREADSHEET 2 : FIFO Method PROCESS DETAILS % Completion Material added conversion costs assumed incurred uniformly E 20% PRODUCTION DETAILS Work in process.00 850. costs were : Materials added Direct labour Overheads $ $ $ 3.000.Finishing direct labour Department.00 150. cost includes : Department.000.000 units 25% 30% Overhead is allocated on the basis of 110% of direct labour cost.00 Units transferred in from Mixing in March were charged at $28.000.Mixing costs Department. .A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B C D Q1.Finishing direct materials Department.00 4.00 3.055.00 During the month of March. 1 March Units completed & transferred out during March Work in process.000.100.000 units 140.290. Work in process. 31 March % Completion of O/WIP % Completion of C/WIP 50.