Urban Company Manufactures a Product Through a Continuous Single-Step Process

Essay

Urban Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for February 2011 are as follows: Production data:
$\begin{array}{ll}\text { In process, beginning of month ( } 20 \% \text { converted) } & 1,000 \text { units } \\\text { Started during February } & 5,000 \text { units } \\\text { Completed and trans ferred to finished goods } & 4,500 \text { units } \\\text { In process, end of month ( } 60 \% \text { converted) } & 1,500 \text { units }\end{array}$
Manufacturing costs:
$\begin{array}{lr}\text { Work in progress, beginning } & £ 14,730 \\\text { Materials } & £ 45,000 \\\text { Direct labour cost } & £ 102,960 \\\text { Factory overhead cost } & £ 51,480\end{array}$