Natural Fibres Ltd manufactures natural fabrics for the clothing industry. The following data relate to Weaving Department for the month of December:
There were 20 000 units in process in the Weaving Department on 1 December (100 per cent complete as to direct material and 40 per cent complete as to conversion).
1. Calculate each of the following amounts using weighted average process costing:
(a) Cost of goods completed and transferred out of the Weaving Department during December.
(b) Cost of the 31 December work in process inventory in the Weaving Department.
2. Repeat requirement 1 using the FIFO method.