Page 220 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 9

Test your understanding 4

PP Ltd makes one product, which passes through a single process. The
details of the process for period 2 were as follows:

There were 400 units of opening work-in-progress, valued as follows:

Material $49,000

Labour $23,000

Production overheads $3,800

No losses are expected in the process.

During the period, 900 units were added to the process, and the following
costs occurred:

Material $198,000

Labour $139,500

Production overheads $79,200

There were 500 units of closing work-in-progress, which were 100% complete
for material, 90% complete for labour and 40% complete for overheads. No
losses were incurred in the process.

PP Ltd uses weighted average cost method.

(a) The number of equivalent units used when calculating the cost per unit
in relation to labour is

(b) The value of completed output for the period was $

(c) The value of the CWIP for the period was $

212