question archive Prepare a physical flow schedule for the Mixing Department for November 2020
Prepare a physical flow schedule for the Mixing Department for November 2020
Subject:AccountingPrice: Bought3
Prepare a physical flow schedule for the Mixing Department for November 2020. Show all workings. (3 Marks) Determine the equivalent units of production for materials and conversion for the Mixing Department for November 2020. Show all workings. (3 Marks) Determine the total cost per equivalent unit of production for materials and conversion for the Mixing Department for November 2020. Show all workings. (5 Marks) Determine the cost of goods transferred out and the cost of ending work in process for the I'L'Iixing Department. Show all workings. (3 Marks) In line with the current lean manufacturing practices, BASB plans to adopt Just-ht-Time (HT) approach to its inventory system. Discuss how the adoption of this approach will affect the BASB's process costing method. (3 Marks) Due to COVID-lEJ pandemic which hit Malaysia since late January 2020, the in?ation rate of this country has increased. Accordingly, the ?nancial accounting reports for the year ended 31 December 2020 of BASE have never seemed to match the actual results of the company. Management has studied the problem and it appeared that the beginning inventories may be the cause of the unmatched information. The reason for this is that the inventory costs have been ?uctuated due to the in?ation. Suggest the best way on how process costing can assist in addressing the problem faced by BASE. Provide justi?cations for your suggestion. (3 Marks)
Beauty Alun Sdn Bhd (BASE) is a manufacturer of quality hair care products, which operates in Kedah. In the production, each product will pass through two (2) operating departments: Mixing and Packaging. BASE uses the weighted average method in allocating the manufacturing costs. The ingredients are combined in the Mixing Department and ?nally,r are packed into l-liter containers in the Packaging Department. The following information pertains to the Mixing Department for the month of November 2020: Units ; in Liters: Work in process, November 1 (100% complete materials, T596 labor and overhead) 10,000 Started during November 50,000 Work in process, November 30 (100% complete materials, 50% labor and overhead) 8,000 The costs in work in process on November 1, in the Mixing Department were as follows: Mixing Department [in RM! Work in process, November 1: Materials 15,000 Direct labor 20,000 Manufacturing overhead 11,600 Total costs 52,600 The costs added by the Mixing Department during the month of November were as follows: Mixing Department (in RM) Materials 90,000 Direct labor 120,000 Manufacturing overhead 100,000 Total costs added 310,000 (Round unit costs to two decimal places)
