TTK Limited produces specialist paints for motor vehicle manufacturers. The company uses a process costing system to determine costs for closing work in progress and finished goods production. At 1 June, there were 5,000 litres of metallic blue paint work in progress with a value of £35,750. This opening work in progress was 65% complete with respect to all costs incurred in the metallic blue paint production process. During June, 25,000 litres of metallic blue paint were completed and transferred to finished goods. The cost per equivalent unit for costs incurred in June was £12. The company uses the weighted average cost method to allocate costs to finished goods and closing work in progress. What was the total production cost of the 25,000 units transferred to finished goods in June?

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The Answer of TTK Limited produces specialist paints for motor vehicle manufacturers. The company uses a process costing system to determine costs for closing work in progress and finished goods production. At 1 June, there were 5,000 litres of metallic blue paint work in progress with a value of £35,750. This opening work in progress was 65% complete with respect to all costs incurred in the metallic blue paint production process. During June, 25,000 litres of metallic blue paint were completed and transferred to finished goods. The cost per equivalent unit for costs incurred in June was £12. The company uses the weighted average cost method to allocate costs to finished goods and closing work in progress. What was the total production cost of the 25,000 units transferred to finished goods in June?

TTK Limited Produces Specialist Paints for Motor Vehicle Manufacturers