Reference no: EM132665651

Process costing [15 marks] Enable Editing Coolongotto Meditation Centre is also a yoga mat maker and produces The Calm, a soft foam rubber yoga mat. All direct materials are added at the beginning of production, and conversion costs are incurred evenly throughout production. Conversion was 65 per cent complete for the 10 000 units in WIP on December 1 and 55 per cent complete for the 10,000 units in WIP on 31 December. During the month, 20 000 Om's were completed and transferred out as finished goods.

Following is a summary of the costs for the period:

Work in process, 1 December Costs added in December    5           50,500         5           32,200

Direct materials Conversion costs                               5            10,200          5              22,500

Problem 1: Using the weighted average method, prepare a production cost report for December to calculate the equivalent units of production, cost per equivalent unit and to assign the cost to inventory.