Reference no: EM132766625

Question - Hassan Limited uses the FIFO method in its process costing system. The data given relates to the most recent month of operations for one of the processing departments:

Opening units 200

Units started into production 3,000

Closing units 300

Material Conversion

Percentage completion of opening inventory 80% 40%

Percentage completion of closing inventory 70% 60%

The cost of beginning inventory was Rs.10,040 of which Rs.7,120 was for materials and the remainder was for conversion cost. The costs added during the month amounted to Rs.132,730 of which Rs.76,048 was for materials and the remainder was for conversion cost.

Required -

1. Compute the equivalent units of material and of conversion in the ending inventory.

2. Compute the equivalent units of material and of conversion that were required to complete the beginning inventory.

3. Determine the number of units started and completed during the month.

4. Compute the cost per equivalent unit for materials and for conversion and the total cost per equivalent unit.

5. Determine the cost of units transferred out.

6. Determine the cost of ending inventory.