Reference no: EM132567308

All-win Engineering limited uses Process Costing system. Following data is available for Department:-1 for the month of May, 2020:

Quantitative data:

Beginning work in process inventory .......................................... 5,000 units

Units put into process during the month ....................................... 55,000 units

Units completed and transferred to department: 2 during the month ....... 52,000 units

Units in work in process closing inventory at month end ................... 5,000 units

Cost data:

Units in beginning work-in-process inventory contains Cost, as follows:

Direct materials......................................................................................... Rs 36,000

Direct labor............................................................................................... 38,000

Factory overhead....................................................................................... 42,000

Costs added during the month are as follows:

Direct materials consumed ...................................................... Rs280,400

Direct labor incurred ............................................................. 321,125

Factory overhead applied ....................................................... 339,225

Other statistical data:

• Work in process opening inventory is completed 75% as per direct material and 60% as per conversion cost.
• Work in process closing inventory is completed 80% as per direct material and 65% as per conversion cost.
• All losses are normal and occurred at the beginning of the month.

Required:

Question 1: Prepare the Cost of Production Report for Department: 1 for the month of May, 2020, if company uses "Weighted Average costing system".

Question 2: Distinguish between process costing and job order costing, and give at least three examples for each one.