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18 marksProcess Costing

CAPE Accounting Unit 2 · 2014 · Paper 2 · Question 2(b)

Taylor Ltd produces via melting and moulding. Normal reject rate is 2% of total input (inclusive of opening WIP). Moulding data for April 2011: Opening WIP (1 April) 17,500 units (Material 30%, Conversion 40%); Started 105,000 units; Completed and transferred out 104,300 units; Ending WIP (30 April) 15,450 units (Material 80%, Conversion 60%). Opening WIP costs: Material 132,000, Conversion 24,000. Added costs in April: Material 812,000, Conversion 240,000. Weighted average method is used.

Prepare a production report for the moulding department for April 2011, showing all workings.

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Other parts of this question

  1. 2(a)(i)Compute the activity application rate for EACH activity centre for Gayle Ltd.[3 marks]
  2. 2(a)(ii)Compute the total overhead cost assigned to EACH product using activity-based costing.[4 marks]
  3. 2(a)(iii)Compute the total cost per unit to manufacture EACH product using activity-based costing.[4 marks]
  4. 2(a)(iv)Compute the total overhead cost assigned to EACH product if direct labour cost had been used to allocate overhead (traditional costing approach).[2 marks]
  5. 2(a)(v)Compute the total cost per unit to manufacture EACH product using direct labour cost (traditional costing approach).[4 marks]

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