1. avatar says

    Hello Sir,
    I’m trying to access your video lectures on process costing work in progress. Whenever I open those videos I instead get “Demand and Supply Curves” lectures. I really don’t know why. I’ve tried it from different browsers and even my cellphone. But the problem persists. Not only process costing but also the further more chapters. The title displays a specific name and I get videos displayed for some other chapter. Please help me. Thankyou so much.

  2. avatar says

    Dear John,
    I have one question about inventory. I hope you will find time to check it for me. CIosing WIP invent. 2000 units, 100% complited for material, 40% complited for labour. Equivalent £12 per unit. So, I have for material 2000unit (100%) + labour 800 unit complited = 2800 unit X £12=£33600 value for units complited WIP. Is that correct? Thank you in advance for your help. Regards

    • Profile photo of John Moffat says

      You need the equivalent cost per unit for both materials and for labour.

      If is is an equivalent cost of $12 per unit for labour, the 33600 is the labour part of the value of the closing WIP. However more information is needed about the material cost to be able to calculate the full value of the WIP.

      • avatar says

        How $33,600 could be the labour cost in WIP since the completed material were 100% meanwhile the workmanship were only achieved at rate of 40%?

        Is it the total cost for both raw material and workmanship is RM12 for each unit?

      • Profile photo of John Moffat says

        Sorry…..if the equivalent cost of labour is $12 per unit, then the labour element of the WIP should be valued at 2000 x 40% x 12 = $9600.

        In addition there is the material cost and since this is 100% complete this would be 2000 x equiv mat cost per unit.

        However this information is missing in what agnieszka typed.

    • Profile photo of John Moffat says

      Think about this…….suppose we are working on 1,000 units, but only 800 are finished.

      What do you think happens to the other 200?

      They are still there in the process and will be finished next month.

      That is why we need to carry forward 200 at the end of this month and being forward 200 at the start of next month.

Leave a Reply