# ACCA F2 Revision part 5 Work-in-Progress

#### Revision notes page used in this lecture

1. says

Sir, the part where we were going to calculate the cost per EU.. why didn’t you add \$1,600 of wip b/d with \$30,000 of present expenditure for materials and then later divide it with 6,000 units? Please enlighten me. TQ

• says

Because the question says to use FIFO.
With FIFO we only take this periods costs to calculate the cost per equivalent unit.

(If you are not clear about the difference between weighted average and FIFO approaches, then do watch the free main lectures on process costing)

• says

So if the question requires us to do it with weighted everage method, we have the calculate the overall cost we have spent for the process correct?

2. says

hi can someone explain how comes when we calculated the equivalent units for opening WIP we did 400*70% = 280 but for closing WIP we did 600*60% = 360 as opposed to 600*40% the remaining equivalent units to be completed?

• says

@maxwellbenn, Because we are accounting for the work done during this month.
This month we finished the WIP brought forward, and we started the WIP carried forward.