MA-Rev assembles its smart mobile devices through multiple processes. In Process 1, printed circuit boards (PCBs) are etched, layered, and tested before being transferred to the next stage for component mounting. Materials introduced at the beginning of the process. Conversions costs introduced evenly throughout the process.       

MA-Rev uses the Weighted Average method for process costing to streamline reporting across its production lines.

Defects are detectable when inspecting the finished goods. Due to the precision required and occasional defects in etching, a normal loss of 10% on input is expected. Defective PCBs are sold to local recyclers for RM2.80 per unit.

In October, Process 1 has an opening WIP of 5,000 units (45% complete). This has recorded a cost of RM50,000 for direct materials and RM30,000 for conversion.

Units introduced to the process was 30,000 units. 28,000 units were completed and transferred out. Closing WIP was 2,800 units (75% complete).

During the month of October, RM90,000 was incurred for direct materials. Conversion costs include direct labour cost RM40,000, variable overhead RM30,000 and fixed overhead RM110,000.

Allocate costs to completed units and closing WIP.

Provide your answer in this format:

Transferred out = RMxxx.xxxx; Closing WIP = RMxx.xxxx