prepare a calculation of the cost of production transferred to finished goods at the 644087
The following transactions relate to a dairy, converting milk to cheese, for the month of May:
|
1 May |
Bought 600 drums of milk from supplier, invoiced price being £90,000. |
|
|
1 May |
Bought cartons, cost £6,000 paid in cash. |
|
|
2 May |
Returned to supplier one drum damaged in transit, £150. |
|
|
3 May |
500 drums of milk issued to cheesemaking department, cost £75,000. |
|
|
4 May |
Issued two thirds of cartons to cheesemaking department, £4,000. |
|
|
14 May |
Paid cheesemakers’ wages, £3,000. |
|
|
14 May |
Paid wages for cleaning and hygiene, £600. |
|
|
16 May |
Paid rent, rates and electricity in respect of dairy, £8,000, in cash. |
|
|
28 May |
Paid cheesemakers’ wages, £3,000. |
|
|
28 May |
Paid wages for cleaning and hygiene, £600. |
|
|
30 May |
progress at end of month. |
|
Required
Prepare a calculation of the cost of production transferred to finished goods at the end of May.