Rare Bhd. produces 'Rare Q' in a lengthy mixing and cooling process. Base materials are introduced at the start of this process, and further chemicals are added when it is 80% complete. Each kilogram of base materials produces 1 kilogram of Rare Q. Data for October are: Opening work in process: 40 kg of base materials, 25% processed Cost of opening work in process: Base materials RM1,550 Processing RM720 Costs incurred in October: Base materials (80 kg) RM3,400 Conversion costs RM6,864 Further chemicals RM7,200 Closing work in process: 50kg of base materials, 90% processed Finished output: 65 kg of Rare Q. Under normal conditions there are no losses of base materials in this process. However, in October, 5kg of partially complete Rare Q were spoiled immediately after the further chemicals had been added. The 5kg of spoiled Rare Q were not processed to finished goods stage and were sold for a total of RM200. Using the FIFO method, calculate the value of Cost of conversion cost per equivalent unit. Question 10Answer a. RM57.20 b. RM60.00 C. RM60.21 d. RM66.00

Rare Bhd. produces 'Rare Q' in a lengthy mixing and cooling process. Base materials are introduced at the start of this process, and further chemicals are added when it is 80% complete. Each kilogram of base materials produces 1 kilogram of Rare Q. Data for October are: Opening work in process: 40 kg of base materials, 25% processed Cost of opening work in process: Base materials RM1,550 Processing RM720 Costs incurred in October: Base materials (80 kg) RM3,400 Conversion costs RM6,864 Further chemicals RM7,200 Closing work in process: 50kg of base materials, 90% processed Finished output: 65 kg of Rare Q. Under normal conditions there are no losses of base materials in this process. However, in October, 5kg of partially complete Rare Q were spoiled immediately after the further chemicals had been added. The 5kg of spoiled Rare Q were not processed to finished goods stage and were sold for a total of RM200. Using the FIFO method, calculate the value of Cost of conversion cost per equivalent unit. Question 10Answer a. RM57.20 b. RM60.00 C. RM60.21 d. RM66.00

Name: Rare Bhd. produces 'Rare Q' in a lengthy mixing and cooling process.
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Description: Rare Bhd. produces 'Rare Q' in a lengthy mixing and cooling process. Base materials are introduced at thestart of this process, and further chemicals are added when it is 80% complete. Each kilogram of basematerials produces 1 kilogram of Rare Q.Dat

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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