Practice Problem 10 A company follows process costing and manufactures a product in one process. The work-in-progress at the end of each month is valued according to FIIFO method. At the beginning of the month of January, the inventory of work-in- progress showed the 400 units, 40% completed, valued at RO 8000. In the month of January, 2600 units amounting to RO 68,500 were introduced into the process. Wages and overheads amounted to RO 79,200 and RO 21,120 respectively. Finished production taken into stock in the month was 2,500 units. At the end of the month, the work-in-progress inventory was 500 units, 80% complete as regards materials and 60% complete as regards labour and overhead. You are required to compute equivalent production and prepare process account.

Practice Problem 10 A company follows process costing and manufactures a product in one process. The work-in-progress at the end of each month is valued according to FIIFO method. At the beginning of the month of January, the inventory of work-in- progress showed the 400 units, 40% completed, valued at RO 8000. In the month of January, 2600 units amounting to RO 68,500 were introduced into the process. Wages and overheads amounted to RO 79,200 and RO 21,120 respectively. Finished production taken into stock in the month was 2,500 units. At the end of the month, the work-in-progress inventory was 500 units, 80% complete as regards materials and 60% complete as regards labour and overhead. You are required to compute equivalent production and prepare process account.

Name: Preparation of Process Accounts(With opening and Closing WIP)Practice
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Description: Preparation of Process Accounts(With opening and Closing WIP)Practice Problem 10A company follows process costing and manufactures a product in one process.The work-in-progress at the end of each month is valued according to FIFOmethod. At the begin

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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