Gce Model Questions Vol1 2024 Financial Accounting Question 42

A production department uses FIFO costing. At the start of the period there were 2,000 units in opening WIP, 40 % complete for materials and 30 % complete for conversion, with costs of £5,000 (materials) and £7,000 (conversion). During the period 8,000 units were started. The department completed and transferred out 6,000 units, has 1,500 units in ending WIP (70 % complete for materials, 50 % for conversion) and recorded an abnormal loss of 500 units that were 100 % complete for both. Materials are added at the start of the process. Costs added during the period are £45,000 for materials and £30,000 for conversion. Using the FIFO method, determine: (i) the cost per equivalent unit for materials and for conversion; (ii) the total cost assigned to units transferred out (rounded to the nearest pound).