Saturn Olive Oil Co is a subsidiary of Mercury Australasia based in Cobram Victoria and produces a range of olive oil products. Olives are purchased from sub-contract olive plantation farmers in an around Cobram. The olives are cold pressed and the oil processed and filtered before bottling and sold to a variety of wholesale and retail vendors under several different brand names.
The following data relates to the production of Saturn Olive Oil during the month of February 2017. At the start of February there was 75,000 litres of product in process. All materials are added at the start of the process and conversion costs are incurred evenly throughout whole of the process.
|Work-in-Process: February 1, 2017||75,000 Litres|
|Stage of completion||Value|
|Work-in-Process: February 28, 2017||110,000 Litres|
|Stage of completion|
During February 2,250,000 litres were commenced and costs incurred during the month were $1,525,000 for Direct Materials and $9,999,500 on Conversion.
(i) Using the Weighted Average Cost Method determine the cost value of closing WIP and the cost value of goods transferred out to Finished Goods during the period.
(ii) Using the First In First Out (FIFO) method determine the cost value of closing WIP and the cost value of goods transferred out to Finished Goods during the period.
Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies. Price shown above includes the solution of all questions mentioned on this page. Please note that our prices are fixed (do not bargain).
After making payment, solution is available instantly.Solution is available either in Word or Excel format unless otherwise specified.
If your question is slightly different from the above question, please contact us at email@example.com with your version of question.