06-08-2011, 02:34 AM
Refresh Food Products produces “Squash Cubes” by continuous processing. During April 2011 producing department X received 8,000 cubes from the preceding department W and after processing, transferred 5,500 cubes to next department Y. During the month there was normal loss of 400 cubes; at the end of process, 600 cubes (75% converted) were lost due to negligence of a worker. There was no work in process beginning inventory, the ending inventory was estimated as 60% converted. Following product costs were charged to the department X during April 2011:
Cost from preceding department W Rs.16,400
Direct materials 2,000
Direct labor 3,625
Factory overhead 5,075 Rs.27,100
In department X all materials are added at the start of process.
Required: Cost of production report for April 2011
Note: Complete working is required, it carries marks.
Cost from preceding department W Rs.16,400
Direct materials 2,000
Direct labor 3,625
Factory overhead 5,075 Rs.27,100
In department X all materials are added at the start of process.
Required: Cost of production report for April 2011
Note: Complete working is required, it carries marks.