Urban Company Manufactures a Product Through a Continuous Single-Step Process

Urban Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for February 2011 are as follows:
Production data:
In process, beginning of month (20% converted)
1,000 units
Started during February
5,000 units
Completed and transferred to finished goods
4,500 units
In process, end of month (60% converted)
1,500 units
Manufacturing costs:
Work in progress, beginning
£14,730
Materials
£45,000
Direct labour cost
£102,960
Factory overhead cost
£51,480
Required:
Prepare a cost of production report for February 2011. Use FIFO process costing.

Correct Answer:

Verified

Show Answer