4) Kwi Company provided the following data from its assembly department for Janu

ID: 2328789 • Letter: 4

Question

4) Kwi Company provided the following data from its assembly department for January 2017: $22,960* $17,710 5.250 $22,960 Work in Process, January 1, 1,400 units, 75% completed Direct Materials (1,400 x $12.65) Conversion (1,400 x 75% x $5.00) Materials added during January from Cutting Department, 58,000 units $742,400 Direct labor for January Factory overhead for January Goods finished during Jan. (including goods in process, Jan. 1), 56,200 Work in Process, January 31, 3,200 units, 30% completed Instructions: Prepare a cost of production report for the assembly department. Assume that all materials are added at the beginning of the process. 134,550 151,611

Explanation / Answer

Particulars

Amount ($)

Opening WIP

22,960.00

Materials added during the year

742,400.00

Direct labour for January

134,550.00

Factory overhead for January

151,611.00

1,028,561.00

Total cost of production

1,051,521.00

Less: Cost of finished goods (3200 units)

Direct materials (742400 x 3200/58000)

40,960.00

Conversion (3400 x 30% x 5)

5,100.00

Cost of finished goods 3200 units

46,060.00

Cost of finished goods including opening WIP

1,005,461.00

Note: It has been assumed that cost of conversion remains the same as it was in the opening WIP.