FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Fabian Ltd mass-produces antique-style furniture using an assembly line process. All direct materials are introduced at the start of the process, and conversion cost is incurred evenly throughout manufacturing. An examination of the company’s work in process inventory account for April
revealed the following selected information:
Debit side:
1 April balance: 200 units, 25% complete as to conversion, cost $27 000*
Production started: 800 units
Direct material used during April: $64 500
April conversion cost: $45 000
Credit side:
Production completed: 600 units
* Supplementary records revealed direct material cost of $18 000 and conversion cost of $9000.
Discussions with manufacturing staff revealed that the ending work in process was 75 per cent
complete with respect to conversion costs.
Required:
Using weighted average
1. Determine the number of units in the 30 April work in process inventory.
2. Calculate the cost of goods completed during April.
3. Determine the cost of the 30 April work in process inventory
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