Roman Ltd.

The following data have been compiled for Roman Ltd's Finishing Department for the month of Mar 2013.
Work in process, 1 Mar - 50,000 units :
Direct Material: 100% complete, cost of
Mixing department
Finishing department direct material
Conversion: 30% complete, cost of
Finishing department direct labour
Finishing department overheads
Units completed during Mar and transferred out:

$1,100,000
$850,000
$150,000
?
140,000 units

Work in process, 31 Mar - 40,000 units:

Direct material: 100% complete
Conversion : 30% complete
Cost incurred during Mar :
Material added
Direct labour
Overheads

$3,055,000
$3,900,000
?

Information:
(i)
Additional materials are added when processing is 20% complete in Finishing department.
(ii)
Conversion activity occurs uniformly throughout the production process.
(iii)
Overhead is allocated on the basis of 110% of direct labour cost.
(iv)
Units transferred in from Mixing were charged at $28.00 per unit.

the month of Mar 2013.

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Roman Ltd.
Production Cost Report for Mar 2013 : Finishing Department

31
32
33 Work in process, 1 Mar
34 Unit transferred-in during Mar
35 Total units to account for

Physical
Units

Percentage of
Completion with
Respect to Conversion

Equivalent Units
Transferred-in Direct Material

50,000
130,000
180,000

25%

140,000
40,000
180,000

100%
30%

Conversion

36
37
38
39
40

Units completed &

transferred out
Work in process, 31 Mar
Total units accounted for
Total equivalent units

140,000
40,000

140,000
40,000

140,000
12,000

180,000

180,000

152,000

41
42
43 Work in process, 1 Mar
44 Current period
45 Total costs to account for
46
47
48
49
50
51
52
53
54
55
56
57

Equivalent units
Costs per equivalent unit ($)

Transferred-In
($)
Direct Material ($) Conversion ($)
1,100,000.00
850,000.00
315,000.00
3,640,000.00
3,055,000.00
8,190,000.00
4,740,000.00
3,905,000.00
8,505,000.00

Total ($)
2,265,000.00
14,885,000.00
17,150,000.00

180,000
26.33

103.98

Assignment of cost :
Cost of goods completed and transferred-out
Cost remaining in Mar 31 work in process inventory
Transferred-in:
$ 1,053,333.33
$ 867,777.78
Direct Material:
$ 671,447.37
Conversion:
Total cost accounted for

14,557,441.52

$
$

2,592,558.48
17,150,000.00

180,000
21.69

152,000
55.95

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Q1. (b)(i)
Assumed that conversion costs of Finishing Department in Mar increased by 20%.
New conversion cost per equivalent unit
New total cost per equivalent unit
New cost of units completed and transferred-out

66.73

16,066,125.73

114.76

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25
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28

Q1. (a)(ii)
PROCESS COSTING SPREADSHEET 2 : FIFO Method
PROCESS DETAILS
% Completion Material added
conversion costs assumed incurred uniformly

20%

PRODUCTION DETAILS
Work in process, 1 March
Units completed & transferred out during March
Work in process, 31 March
% Completion of O/WIP
% Completion of C/WIP

50,000 units
140,000 units
40,000 units
25%
30%

Overhead is allocated on the basis of 110% of direct labour cost.

Work in process, 1 March, cost includes :
Department- Mixing costs
Department- Finishing direct materials
Department- Finishing direct labour
Department- Finishing overheads

$
$
$
$

1,100,000.00
850,000.00
150,000.00
165,000.00

During the month of March, costs were :

Materials added
Direct labour
Overheads

$
$
$

3,055,000.00
3,900,000.00
4,290,000.00

Units transferred in from Mixing in March were charged at $28.00 per unit.