Reference no: EM132825523

Rotel Fashions produces three types of handbags. All bags pass through three operations. All materials are issued at the beginning of the first operation.

Regardless of design each bag requires the same direct labour and factory overhead. Only the amount of direct material varies for each type of bag.

In April Rotel Fashions commenced production on three batches, one for each type of handbag. These batches comprised:

Batch S25 800 units

Batch M50 600 units

Batch L75 500 units

Cost details for Operation 1 for April were:

Direct Materials $

Batch S25 5,600

Batch M50 6,000

Batch L75 6,000 17,600

Direct Labour 15,840

Factory Overhead 21,120

At the end of April, 200 of Batch S25 were 30% complete.

All other handbags had been transferred to Operation 2.

Required:

Problem (a) Calculate the value of Work in Progress at 30 April for Operation 1.

Problem (b) Prepare journal entries to record the April transactions for Operation 1.