Recent Question/Assignment

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Question
Home Makers uses an operating costing system and produces two products.
The same conversion cost is charged to all products passing through a common process.
Details for the month of March are:
Cutting Assembly Painting
Direct Materials - Product A $88,000
Direct Materials - Product B $66,000 $1,600
Direct Labour $33,000 $51,600 $12,000
Machine Hours Worked 9,000 4,200 1,080
Units Commenced and Completed:
Product A 10,000 10,000
Product B 5,000 5,000 2,000
Both products commence production in Cutting before passing to Assembly. Product A is then transferred to finished goods. Only Product B is painted.
There were no opening inventories of either product of work in process or finished goods.
At 31 March, 5,000 units of Products B were completely assembled, but only 2,000 of these had been transferred to Painting and had completed that operation.
Factory overhead is applied in all operations at the rate of $4 per machine hour.
Required:
1 Calculate the cost per unit for each product (round to two decimal places).
2 Calculate the total costs of all completed production.
3 Calculate the total value of work in process for Product B at the end of the assembly
operation.
Show workings for all calculations made.

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