# ECR Dec 07 Task 1.3

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I am trying to do the Dec 07 Exam Paper and am stuck on Task 1.3b. I looked at this and dont have a clue!

I am finding W.I.P quite difficult to grasp. On W.I.P is the Direct Materials used always 100% and the labour part complete?

I printed a page off that Sandy Hood had done for "a cool cat" and thought I understood it from this but then looked at this question and was back to square one.

Anyone else struggling with this?

• Registered, Moderator Posts: 2,034
(a) Calculate the total cost of direct labour for solvent S789 for November.
Normal time hours worked 260 hours
Overtime at time and a half worked 40 hours
Overtime at double time worked 30 hours
Total hours worked 330 hours
Normal time hourly rate £10 per hour

Total hours 330 x £10 = £3,300
extra half 40 hrs x £5 = £200
double hrs 30 hrs x £10 = £300

Total cost £3,800

(b) Opening work in progress Nil
Finished output to next process 7,000 litres
Closing work in progress 1,200 litres
Degree of completion – direct materials 100%
Degree of completion – direct labour 50%

Equivalent output = 7,000 litres + (50% x 1,200 litres) = 7,600
calculate the direct labour cost per litre of solvent S789 of the equivalent finished production.

£3,800/7,600 litres = £0.50 per litre
Sandy
[email protected]
www.sandyhood.com
• Registered, Moderator Posts: 2,034
On W.I.P is the Direct Materials used always 100% and the labour part complete?

Generally but not necessarily

If you came into my kitchen 1 hr before lunch there might be chicken in the oven, so if I don't intend to add any more ingredients before serving it the material would be 100% complete, but the labour would be only 60% complete (I've prepared the chicken before cooking) but 40% of my work comes after it comes out cooked - carving etc

So that chicken (1 hr short of being cooked) is 100% complete for materials and 60% complete for labour.

Any help?
Sandy
[email protected]
www.sandyhood.com
• Registered Posts: 1,774
SandyHood wrote: »
On W.I.P is the Direct Materials used always 100% and the labour part complete?

Generally but not necessarily

If you came into my kitchen 1 hr before lunch there might be chicken in the oven, so if I don't intend to add any more ingredients before serving it the material would be 100% complete, but the labour would be only 60% complete (I've prepared the chicken before cooking) but 40% of my work comes after it comes out cooked - carving etc

So that chicken (1 hr short of being cooked) is 100% complete for materials and 60% complete for labour.

Any help?

As always you explained it brilliantly. Thanks for that