Preparing a Quantity Schedule – FIFO Method (20 marks) Hielta Oy, a Finnish comp
ID: 2402810 • Letter: P
Question
Preparing a Quantity Schedule – FIFO Method (20 marks) Hielta Oy, a Finnish company, processes wood pulp for various manufacturers of paper products. Data relating to tonnes of pulp processed during June are provided below: Percentage Completed Tonnes of Pulp Materials Labour and Overhead Work in process, June 1 20,000 90% 80% Work in process, June 30 30,000 60% 40% Started into processing during June 190,000 REQUIRED: Prepare a quantity schedule for June assuming that Hielta Oy uses the FIFO method.
Explanation / Answer
Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Labour & O/H %completion Equivalent Labour & O/H Opening WIP 20,000.00 10% 2,000.00 20,000.00 20% 4,000.00 Units started and completed(190,000 - 30,000) 160,000.00 100% 160,000.00 160,000.00 100% 160,000.00 ending WIP 30,000.00 60% 18,000.00 30,000.00 40% 12,000.00 Equivalent Units 180,000.00 176,000.00