Datuk Ali Sdn Bhd (DASB) produces floor fan that passes through TWO (2) processing departments namely Assembly Department and Finishing Department. All direct materials are added at the beginning of the process in both departments. Meanwhile the conversion cost occurs uniformly throughout the production process. The following data is for the month of October 2020 for Finishing Department: Production Data Beginning work in process inventory Ending work in process inventory Percentage of completion (conversion cost): Beginning work in process inventory Ending work in process inventory Current production: Units started into production Units completed and transferred out Units started and completed Cost Data 4,725 units 5,775 units 40% 60% ? 26,513 21,788

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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QUESTION 3
Datuk Ali Sdn Bhd (DASB) produces floor fan that passes
through TWO (2) processing departments namely
Assembly Department and Finishing Department. All direct
materials are added at the beginning of the process in
both departments. Meanwhile the conversion cost occurs
uniformly throughout the production process. The following
data is for the month of October 2020 for Finishing
Department:
Production Data
Beginning work in process inventory
Ending work in process inventory
Percentage of completion (conversion cost):
Beginning work in process inventory
Ending work in process inventory
Current production:
Units started into production
Units completed and transferred out
Units started and completed
Cost Data
Costs of beginning work in process inventory:
Transferred-in
Direct materials
Conversion costs
Cost in the current period:
Transferred-in
Direct materials
Conversion costs
4,725 units
5,775 units
40%
60%
?
26,513
21,788
RM37,170
RM29,435
RM18,179
RM110,252
RM82.689
RM56.176
REQUIRED:
(a) Calculate units started into production.
(b) Calculate the equivalent units of production using the
First In, First Out (FIFO) method.
(e) Calculate cost per equivalent units of production using
the FIFO method.
(d) Calculate total cost for ending work process using the
FIFO method.
(e) Explain how total cost for completed and transferred out
will be calculated using the FIFO method for Finishing
Department.
(n) Explain how equivalent unit is calculated under the
weighted-average method for Finishing Department.
1
Transcribed Image Text:QUESTION 3 Datuk Ali Sdn Bhd (DASB) produces floor fan that passes through TWO (2) processing departments namely Assembly Department and Finishing Department. All direct materials are added at the beginning of the process in both departments. Meanwhile the conversion cost occurs uniformly throughout the production process. The following data is for the month of October 2020 for Finishing Department: Production Data Beginning work in process inventory Ending work in process inventory Percentage of completion (conversion cost): Beginning work in process inventory Ending work in process inventory Current production: Units started into production Units completed and transferred out Units started and completed Cost Data Costs of beginning work in process inventory: Transferred-in Direct materials Conversion costs Cost in the current period: Transferred-in Direct materials Conversion costs 4,725 units 5,775 units 40% 60% ? 26,513 21,788 RM37,170 RM29,435 RM18,179 RM110,252 RM82.689 RM56.176 REQUIRED: (a) Calculate units started into production. (b) Calculate the equivalent units of production using the First In, First Out (FIFO) method. (e) Calculate cost per equivalent units of production using the FIFO method. (d) Calculate total cost for ending work process using the FIFO method. (e) Explain how total cost for completed and transferred out will be calculated using the FIFO method for Finishing Department. (n) Explain how equivalent unit is calculated under the weighted-average method for Finishing Department. 1
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