Answer:
Explanation:
We solve this prblem in three steps
Step#1
In this step we will prepare the summary of units produces and trasffered and units in closing stock
Opening units 8000
Started 133000
141000
Transffered 122000
Closing 19000
Step#2
We will prepare production and cost table, total cost will be divided by the total units produced to identify the cost per unit incurred on material, labor and overheads.
Cost opening Current Total Complete Closing Equiv. Cost
Head Cost Cost Cost units WIP Units Per unit
Material 38,600 751,000 789,600 122,000 19,000 141,000 5.6000
Labor 1,480 138,820 140,300 122,000 13,300 135,300 1.0370
O.H 2,960 267,640 270,600 122,000 13,300 135,300 2.0000
Step-3
In this process we will calculate the cost incurred during the period.
Complete 122,000 8.64 1,053,708
Closing Wip
Material 19,000 5.60 106,400
Labor 13,300 1.04 13,792
Overheads 13,300 2.00 26,600
146,792
Total Cost 1,200,500
