Question

do not use image answer please.

Karlene Industries produces plastic ice cube trays in two processes: heating and stamping. All materials are added at the beginning of the Heating Department process. Karlene uses the weighted averaged method to compute equivalent units.

On 1 November 2016, the Heating Department had in process 1,000 trays that were 70% complete. During November, it started into production 12,000 trays. On 30 November, 2016, 2000 trays that were 60% complete were in process.

The following cost information for the Heating Department was also available.

Work in process, 1 November:

                                

Direct material (100% complete)	$640
Conversion costs (70% complete)	$360
Balance in work in process, 1 November	$1,000

Costs incurred during November:

Direct material                                   $3,000

  Conversion costs:

Direct labour                         $2,300

Manufacturing overhead               $4,050    $6,350

Total production costs incurred during November         $9,350

Required:

1. Analysis of physical flow of units (2 marks)
2. Calculation of equivalent units (2 marks)
3. Calculation of units cost (4 marks)
4. Analysis of total costs (4 marks)

Answer 1

Analysis of physical flow :

Unit to be accounted for
Beginning work in process	1000
Unit started	12000
Total Units to be accounted for	13000
Units accounted as
Unit completed and transferred out	11000
Ending work in process	2000
Total Units accounted as	13000

2) Equivalent unit

	Material	Conversion
Unit transferred out	11000	11000
Ending work in process	2000	2000*60% = 1200
Equivalent unit	13000	12200

3) Cost per equivalent unit

	Material	Conversion
Beginning work in process	640	360
Cost added	3000	6350
Total Cost	3640	6710
Equivalent unit	13000	12200
Cost per equivalent unit	0.28	0.55

Analysis of total Cost

	Material	Conversion	Total
Cost of unit transferred out	11000*.28 = 3080	11000*.55 = 6050	9130
Ending work in process	2000*.28 = 560	1200*.55 = 660	1220
Total Cost	3640	6710	10350