Reference no: EM132955483

Question - Romagna plc manufactures a product that passes through two processes: mixing and packaging. All manufacturing costs are added uniformly in the mixing department.

Information for the mixing department for April is as follows: Work in progress, April 1 Units (60% complete)

Direct materials Direct labour Overhead

5,000 £20,000 £24,000 £4,000

During April, 80,000 units were completed and transferred to packaging.

The following costs were incurred by the mixing department during the month:

Direct materials Direct labour Overhead

£180,000 £200,000 £59,200

At April 30, 12,000 units that were 10% complete remained in the mixing department. Romagna plc use the weighted average method to allocate costs to products. Requirement

a) Compute Romagna plc's equivalent units of production for April.

b) Compute Romagna plc's total costs to account for in April.

c) Determine Romagna plc's total cost per equivalent unit of production, the cost of goods transferred to the packaging department, and the cost of the ending work in progress for the mixing department in April.

d) Discuss the main differences between the FIFO and weighted average methods in process costing.