c) Consider the following data for Firm WDC Firm WDC (Wooden Doors Company) manufactures one type of wooden doors. WDC buys wood as its direct material for the Assembly Department of its London factory. The doors are transferred to the Customised Department, where they are hand-shaped and various metal parts are added to them. Firm WDC uses the weighted-average method of process costing. Consider the following data for the Assembly Department in April 2020: Page 2 of 5 Opening Work-In-Progress (01/04)* Started in April Completed During April Physical Units 1,200 3,100 2,600 Direct Materials (E) 15,700 Conversion Costs (£) 5,800 Closing Work-In-Progress (30/04)t Costs Added During April 500 70,000 55,000 * Degree of completion: direct materials, 100%; conversion costs, 40%. t Degree of completion: direct materials, 100%; conversion costs, 25%. » Use one decimal point for your calculations i) Summarise output in physical units and calculate equivalent units for Assembly Department of Firm WDC for April 2020. ii) Calculate the equivalent unit costs of opening work in progress i) Calculate the equivalent unit costs of work done in current period only (April 2020)
c) Consider the following data for Firm WDC Firm WDC (Wooden Doors Company) manufactures one type of wooden doors. WDC buys wood as its direct material for the Assembly Department of its London factory. The doors are transferred to the Customised Department, where they are hand-shaped and various metal parts are added to them. Firm WDC uses the weighted-average method of process costing. Consider the following data for the Assembly Department in April 2020: Page 2 of 5 Opening Work-In-Progress (01/04)* Started in April Completed During April Physical Units 1,200 3,100 2,600 Direct Materials (E) 15,700 Conversion Costs (£) 5,800 Closing Work-In-Progress (30/04)t Costs Added During April 500 70,000 55,000 * Degree of completion: direct materials, 100%; conversion costs, 40%. t Degree of completion: direct materials, 100%; conversion costs, 25%. » Use one decimal point for your calculations i) Summarise output in physical units and calculate equivalent units for Assembly Department of Firm WDC for April 2020. ii) Calculate the equivalent unit costs of opening work in progress i) Calculate the equivalent unit costs of work done in current period only (April 2020)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:c) Consider the following data for Firm WDC
Firm WDC (Wooden Doors Company) manufactures one type of wooden doors. WDC buys wood
as its direct material for the Assembly Department of its London factory. The doors are transferred
to the Customised Department, where they are hand-shaped and various metal parts are added to
them.
Firm WDC uses the weighted-average method of process costing. Consider the following data for
the Assembly Department in April 2020:
Page 2 of 5
Opening Work-In-Progress (01/04)*
Started in April
Completed During April
Physical
Units
1,200
3,100
2,600
Direct Materials
(E)
15,700
Conversion Costs
(£)
5,800
Closing Work-In-Progress (30/04)t
Costs Added During April
500
70,000
55,000
* Degree of completion: direct materials, 100%; conversion costs, 40%.
t Degree of completion: direct materials, 100%; conversion costs, 25%.
» Use one decimal point for your calculations
i) Summarise output in physical units and calculate equivalent units for Assembly Department of
Firm WDC for April 2020.
ii) Calculate the equivalent unit costs of opening work in progress
i) Calculate the equivalent unit costs of work done in current period only (April 2020)
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