IMC Pty Ltd produces plastic ice cube trays in two processes: heating and stamping. All materials are added at the beginning of the Heating Department process, and IMC Pty Ltd uses the weighted-average method to compute equivalent units. On November 1, the Heating Department had in process 1,000 trays that were 70% complete. In November, it started the production of 12,000 trays. On November 30, 2022, 2,000 trays that were 60% complete were in process. The following cost information for the Heating Department was also available. Word in process, November 1 Materials $640 Conversion costs $360 Cost of work in process, November 1 $1,000 The cost incurred in November Material $3,000 Labour $2,300 Overhead $4,050 Instructions a) Prepare a production cost report for the Heating Department for November 2022, using the weighted-average method and explain why do IMC Pty Ltd using the weighted-average method . b) Journalise the transfer of costs to the Stamping Department.
IMC Pty Ltd produces plastic ice cube trays in two processes: heating and stamping. All materials are added at the beginning of the Heating Department process, and IMC Pty Ltd uses the weighted-average method to compute equivalent units. On November 1, the Heating Department had in process 1,000 trays that were 70% complete. In November, it started the production of 12,000 trays. On November 30, 2022, 2,000 trays that were 60% complete were in process. The following cost information for the Heating Department was also available. Word in process, November 1 Materials $640 Conversion costs $360 Cost of work in process, November 1 $1,000 The cost incurred in November Material $3,000 Labour $2,300 Overhead $4,050 Instructions
a) Prepare a production cost report for the Heating Department for November 2022, using the weighted-average method and explain why do IMC Pty Ltd using the weighted-average method .
b) Journalise the transfer of costs to the Stamping Department.
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