Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process. Production Cost report: Production cost report is made to summarize the details of production and cost activities in a process or department during a particular period. The Production cost report can be papered using FIFO or weighted average methods. Under the FIFO method the cost and equivalent units of beginning WIP is presented separately and calculations are done accordingly. Under the weighted average method the cost and equivalent units of beginning are not treated separately. Conversion Costs: Conversion costs are manufacturing costs which are incurred to convert the raw material into finished good. These costs include direct labor and overheads. Equivalent units : Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit. 1. To prepare: The production cost report for the Dyeing department of Carla Carpet for the Month of November 2018 using weighted average method

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Use the information provided to answer following question Larry Ltd. is a registered VAT taxpayer. His business transactions for the months of January to March are included below. The VAT rate is 12.5%. All the amounts given are VAT inclusive. Months Sales Purchases Imports January $50,625 $30,375 $17,662.50 February $63,337.50 $38,475 $25,087.50 March $67,500 $52,312.50 $22,612.50 What is the Larry Ltd. VAT payable/refund for the 3 months period? A.$13,125 payable B.$1,562.50 refund C.$562.50 refund D.$20,143.50 payable

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Chapter 20, Problem P20.35APGA

To determine

Concept introduction:

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

Production Cost report: Production cost report is made to summarize the details of production and cost activities in a process or department during a particular period. The Production cost report can be papered using FIFO or weighted average methods. Under the FIFO method the cost and equivalent units of beginning WIP is presented separately and calculations are done accordingly. Under the weighted average method the cost and equivalent units of beginning are not treated separately.

Conversion Costs: Conversion costs are manufacturing costs which are incurred to convert the raw material into finished good. These costs include direct labor and overheads.

Equivalent units: Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit.

1. To prepare: The production cost report for the Dyeing department of Carla Carpet for the Month of November 2018 using weighted average method

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Use the information provided to answer following question Larry Ltd. is a registered VAT taxpayer. His business transactions for the months of January to March are included below. The VAT rate is 12.5%. All the amounts given are VAT inclusive. Months Sales Purchases Imports January $50,625 $30,375 $17,662.50 February $63,337.50 $38,475 $25,087.50 March $67,500 $52,312.50 $22,612.50 What is the Larry Ltd. VAT payable/refund for the 3 months period? A.$13,125 payable B.$1,562.50 refund C.$562.50 refund D.$20,143.50 payable

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