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Blessings Palms had an opening WIP inventory of 30,000 straws as on January 1

Accounting

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Blessings Palms had an opening WIP inventory of 30,000 straws as on January 1. The straw in the WIP inventory contained direct materials costing Rs.120,000 and conversion cost of Rs.272,000. For the month of January, the following costs were incurred:

Production Completed 70000 units

Ending WIP - 60% completed 20000 units

Direct Material cost Rs. 258000

Conversion cost Rs. 695600

 

Blessing Palm has adopted the weighted-average process-costing system. While the materials are appended at the beginning of manufacturing activity, the conversion cost is incurred evenly throughout manufacturing process.

Required:

1. Compute the total equivalent units and cost per equivalent unit of direct material and conversion cost.
2. Determine the cost of completed production
3. What is the cost of the work in process as on 31 January?