COST ACCOUNTING
PROCESS COSTING
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Question
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Materials costs of RM1, 200, 000 and conversion costs of RM1, 530, 000 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 20, 000 units were started into production in September, and there were 5, 000 units in ending work in process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to the 5, 000 units in the ending work in process?
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RM682, 500.
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RM750, 000.
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RM480, 000.
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RM300, 000.
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Explanation:
Detailed explanation-1: -Conversion costs include direct labor and overhead expenses incurred as a result of the transformation of raw materials into finished products.
Detailed explanation-2: -Explanation: Direct Labor is both a prime cost and a conversion cost.
Detailed explanation-3: -In cost accounting, conversion costs are all the costs incurred to convert raw materials into a finished good. Conversion costs include direct labor and manufacturing overhead.
There is 1 question to complete.