Materials are added at the start of process and conversion, Accounting Basics

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Materials are added at the start of process and conversion

Problem

Materials are added at the start of process and conversion costs are added evenly throughout. At the start of March WIP was 40% complete for conversion with material costs of 10000 and conversion cost of 60000.

Beginning WIP inventory-2000 units .Units started during the month the month - 15000 units .Units transferred to finish goods - 10000 units. ending WIP was 80% complete direct material cost - 500000. conversion cost - 751200

1. Prepare the production cost report for march using weighted average method.

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Accounting Basics: Materials are added at the start of process and conversion

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Accounting Basics: Materials are added at the start of process and conversion

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