(Solution) - Telemark Kjemi AS manufactures an industrial solvent in two departments -(2025 Original AI-Free Solution)

Paper Details

Telemark-Kjemi AS manufactures an industrial solvent in two departments - mixing and cooking. This question focuses on the Cooking Department. During June 2007, 90 tones of solvent were completed and transferred out from the Cooking Department. Direct materials are added at one point in time during the process. Conversion costs are added uniformly during the process. Telemark-Kjemi uses the weighted-average process-costing method. The following information about the actual costs for June 2007 is available.

Required
1. Calculate the equivalent tones of solvent completed and transferred out and in closing work in progress for each cost element.
2. Calculate cost per equivalent unit for opening work in progress and work done in current period.
3. Summaries total costs to account for and assign these costs to units completed (and transferred out) and to units in closing work in progress using the weighted-average method.