In: Accounting
Kitty Inc. processes fish for various cat food distributors. Two departments are involved Department 1 and Department 2. Data relating to kilograms of Cat Food processed in Department 1 during July are presented below:
Kg. of Cat Food |
Percentage Completed |
|
WIP, May 1st |
20,000 |
30% |
Started into process during May |
380,000 |
- |
WIP, May 31st |
25,000 |
60% |
All materials are added at the beginning of processing in Department 1. Labour and overhead (conversion) costs are incurred uniformly throughout processing.
Required:
Kitty Inc. | ||||
Production Cost Report (Extracts) | ||||
For the month ended July 31 | ||||
Actual Units | ||||
Calculation of Physical UNITS: | ||||
Units in beginning inventory | 20,000 | |||
Units started during the period | 380,000 | |||
Units to be accounted for | 400,000 | |||
Actual Units | Equivalent Units | |||
Material | CONVERSION | |||
Units Completed and Transferred | 375,000 | 375,000 | 375,000 | |
Units in ending inventory | 25,000 | 25,000 | 15,000 | |
Equivalents Units of production | 400,000 | 400,000 | 390,000 | |
Material | CONVERSION | |||
Equivalents Units of production | 400,000 | 390,000 | ||