Reference no: EM132717566
Question - Latin Quarter Limited produces one type of body lotion. They have two departments namely the mixing and finishing department.
The following information is available for September 2014:
Production data:
Units
Units in process, 1 September; 80% completed in terms of material, 40% completed in terms of conversion 5 000
Units started in production during September 7 000
Units in process, 30 September; 100% completed in terms of material, 60% completed in terms of conversion 2 000
Cost data:
R
Work in process inventory, September 1:
Materials costs 40 000
Conversion costs 20 000
Cost added during September:
Materials costs 100 000
Conversion costs 60 000
Latin Quarter Limited uses the FIFO method as cost method in their process costing system.
REQUIRED -
i) Prepare the quantity schedule and calculation of equivalent units.
ii) Calculate the total and unit costs for the month.