Waterloo Ltd uses two processes to manufacture desks. The following details are applicable to Process 2 for March 2022: Details in connection with costs: Incomplete work (opening): Costs of previous process Direct materials Conversion costs Costs incurred during March 2022: Transferred from previous process Direct materials Conversion costs Production details Units of incomplete work (opening): (100% complete i.r.o. materials; 40% complete i.r.o. conversion costs) Units received from the previous process Units completed and transferred Units of incomplete work (closing): (100% complete i.r.o. materials; 70% complete i.r.o. conversion costs) R 1 440 000 1 134 000 198 000 108 000 3 096 000 2 034 000 378 000 684 000 4 536 000 Units 30 000 120 000 150 000 (90 000) 60 000
Waterloo Ltd uses two processes to manufacture desks. The following details are applicable to Process 2 for March 2022: Details in connection with costs: Incomplete work (opening): Costs of previous process Direct materials Conversion costs Costs incurred during March 2022: Transferred from previous process Direct materials Conversion costs Production details Units of incomplete work (opening): (100% complete i.r.o. materials; 40% complete i.r.o. conversion costs) Units received from the previous process Units completed and transferred Units of incomplete work (closing): (100% complete i.r.o. materials; 70% complete i.r.o. conversion costs) R 1 440 000 1 134 000 198 000 108 000 3 096 000 2 034 000 378 000 684 000 4 536 000 Units 30 000 120 000 150 000 (90 000) 60 000
Waterloo Ltd uses two processes to manufacture desks. The following details are applicable to Process 2 for March 2022: Details in connection with costs: Incomplete work (opening): Costs of previous process Direct materials Conversion costs Costs incurred during March 2022: Transferred from previous process Direct materials Conversion costs Production details Units of incomplete work (opening): (100% complete i.r.o. materials; 40% complete i.r.o. conversion costs) Units received from the previous process Units completed and transferred Units of incomplete work (closing): (100% complete i.r.o. materials; 70% complete i.r.o. conversion costs) R 1 440 000 1 134 000 198 000 108 000 3 096 000 2 034 000 378 000 684 000 4 536 000 Units 30 000 120 000 150 000 (90 000) 60 000
Study the information provided below and prepare the Process Cost Report for Process 2 using the weighted average method. The report must include the following: 1. Quantity Statement 2. Cost Statement 3. Cost Allocation Statement
Definition Definition Operation costing method employed to determine the value of a product at each process or stage of the production process, applicable where goods produced from a series of continuous operations or procedure. Process costing is employed by businesses that manufacture goods and where production is in repetitive inflow.
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