Unit 6 - progress test- am i right?

Primble
Primble Registered Posts: 734 Epic contributor 🐘
Hey, its probably wrong but heres the question followed by my answer. how wrong am i?

Output process of 800 tonnes
wip 100 tonnes

inputs: material 900 tonnes@£58
labour 160 hours@ £8p/h
overheads £1500

degree of completion: 100% materials, 50% labour and overheads

answer (as a t account)

Process account
unit £ unit £
direct mat. 900 52200 output 800 47790
direct lab 1280 wip 100 7190
overhead 1500

54980 54980


I am ment to put this into a statement of equivalent units and statment of costs. I haven't got so far with this as lost confidence

ELEMENT OUTPUT WIP % EQUIVALENT cost
UNITS Units complete Units Cost Unit

dir.mat. 800 100 100
dir.lab 50
overhead 50

Comments

  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
    the red is ment to be as a t account but i dint do it very weel. basically direct material,lab, overhead are debits. output, wip ar credits. the first number is units the second is monetary value
  • crispy
    crispy Registered Posts: 466 Dedicated contributor 🦉
    Hello,

    Im meant to be sitting a cima paper next week and am expecting process costing questions, here's my attempt:-

    Material Cost per EU = £52,200/900 = £58
    Conversion Cost per EU = £2,780/850 = £3.27

    850 units are made up of 800 finished output and 50 for Cl. WIP (50% of 100)

    Valuation:
    Finshed Output 800 x (£58 + £3.27) = £49,016
    Cl. WIP (100 X £58) + (50 X £3.27) = £5,964
    Total (Credit side of T Account) = £ 54,980


    I hope this is ok but maybe someone else can confirm?
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