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A. Barbarossa Ltd is a Turkish factory that produces premium handmade rugs. These rugs go under two production departments: Stage I and Stage II. The following information is for the Stage I Department in May 2021:

A. Barbarossa Ltd is a Turkish factory that produces premium handmade rugs. These rugs go under two production departments: Stage I and Stage II. The following information is for the Stage I Department in May 2021:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A. Barbarossa Ltd is a Turkish factory that produces premium handmade rugs. These rugs go under two production departments: Stage I and Stage II. The following information is for the Stage I Department in May 2021: Work in process, May 1s: Units (80% complete for materials and 40% complete for labour) 40,000 Direct materials 90,000* 60,000* Direct labour * TL: Turkish Lira During May, 57,000 units were completed and transferred to the Stage II Department. The incurred costs for direct materials and direct labour in Stage I Department during May were 25,000 and 13,000 TL, respectively. On 31st May, 12,000 units remained in the Stage I Department. These remaining units were 95% and 85% complete for materials and labour costs, respectively. Required: Prepare a cost of production report (in Turkish Lira) using the weighted average method for the Stage I Department.
Transcribed Image Text:A. Barbarossa Ltd is a Turkish factory that produces premium handmade rugs. These rugs go under two production departments: Stage I and Stage II. The following information is for the Stage I Department in May 2021: Work in process, May 1s: Units (80% complete for materials and 40% complete for labour) 40,000 Direct materials 90,000* 60,000* Direct labour * TL: Turkish Lira During May, 57,000 units were completed and transferred to the Stage II Department. The incurred costs for direct materials and direct labour in Stage I Department during May were 25,000 and 13,000 TL, respectively. On 31st May, 12,000 units remained in the Stage I Department. These remaining units were 95% and 85% complete for materials and labour costs, respectively. Required: Prepare a cost of production report (in Turkish Lira) using the weighted average method for the Stage I Department.
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