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Question - Jaja Son Bhd uses weighted-average process costing to account for its prodcution costs. Direct labour is added evenly throughout the process. Direct materials are added at the beginning of the process. During September, the company transferred 735,000 units of product to finished goods. At the end of September, the goods in process inventory consists of 207,000 units that are 90% complete with respect to labour. Beginning inventory had RM244,920 of direct materials and RM69, 098 of direct labour cost. The direct labour cost added in September is RM1,312, 852 and the direct materials cost added is RM1,639,080.
Required -
a) Determine the equivalent units of production with respect to direct labour and direct materials.
b) Compute both the direct labour cost and the direct materials cost per equivalent unit.
c) Compute both direct labour cost and direct materials cost assigned to (a) units completed and transferred out, and (b) ending goods in process inventory.
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