Question 1 -
Jazza Ltd produces clocks at its Shenzhen factory. Each clock is put together in the Assembly Department and then tested in the Testing Department.
In the Assembly Department, the process-costing system at Jazza Ltd has a single direct cost category (direct materials) and a single indirect cost category (conversion costs).
Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process.
When the Assembly Department finishes work on each clock, it is immediately transferred to Testing.
Jazza Ltd uses the weighted-average method of process costing.
Data for the Assembly Department for August 2017 are:
|
Physical Units
|
Direct Materials
|
Conversion costs
|
|
Work in process, 1 August
|
6,000
|
$2.950.000
|
$925.500
|
|
Started during August
|
20,000
|
|
|
|
Completed during August
|
22,500
|
|
|
|
Total costs added during October
|
|
$12200.000
|
$6,375,000
|
Opening work in process is 60% complete with regards to conversion costs and dosing work in process is 70% complete with regards to conversion costs.
REQUIRED: Produce a production cost report in order to calculate the cost of clocks transferred out and the value of closing work in process in the assembly department.
Question 2 -
Limited edition dresses Pty Ltd incurred the following costs for job number SH400, which consisted of 500 cocktail dresses for sale to a fashion store.
Direct material:
- 1 December Requisition no. 520: 900 metres of Cotton @ 8.50 per metre
- 16 December Requisition no. 101: 600 metres of Nylon @ $4.40 per metre
Direct labour:
- 16 December Timesheet no. 72: 500 hours@$24 per hour
Manufacturing overhead: Applied on the basis of direct labour hours @$12 per hour
Additional information: Job SH400 was completed on 16 December.
REQUIRED: Prepare a job cost sheet including dates & requisition / timesheet numbers and record the information given above and also a cost summary for job SH400.