TKC Limited operates a process costing system. At 1 June, work in progress (WIP) of 800 units was 50% complete with respect to materials, labour and overhead and had a cost of £16,800. 6,200 units of product were transferred to finished goods during June. At the end of the month, WIP consisted of 250 units of product which were 80% complete with respect to materials, labour and overhead. Costs incurred by the process during June were £268,800. TKC Limited uses the weighted average cost method when valuing closing work in progress and finished goods. What was the production cost of goods transferred to finished goods during June?
A) £260,400
B) £276,080
C) £276,640
D) £276,675

Question

Quizplus · Accepted Answer

The Answer of TKC Limited operates a process costing system. At 1 June, work in progress (WIP) of 800 units was 50% complete with respect to materials, labour and overhead and had a cost of £16,800. 6,200 units of product were transferred to finished goods during June. At the end of the month, WIP consisted of 250 units of product which were 80% complete with respect to materials, labour and overhead. Costs incurred by the process during June were £268,800. TKC Limited uses the weighted average cost method when valuing closing work in progress and finished goods. What was the production cost of goods transferred to finished goods during June?
A) £260,400
B) £276,080
C) £276,640
D) £276,675

TKC Limited Operates a Process Costing System