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ACCA F2 Revision part 5 Work-in-Progress
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sorry forgot to mention another question quite similar. We did Weighted Average calculation and the same we used finished items and Closing WIP but we didn’t use Opening WIP. Again confused why. Thanks a lot for your help. Regards,
Hi John,
Thanks a lot for your study materials. They are absolutely excellent. Just quick question regarding this revision session. When we did valuation (FIFO) we used Opening and Finished ONLY we did not use WIP at month end (600) for our calculations. Can you please explain why? the reason i am asking is a bit confused why e used them for your monthly calculation of finished items but we didnt use for our valuation calculation and we still used Opening inventories anyway.
Thanks in advance,
WHICH PAGE?
Your question makes no sense.
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
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)
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?
That is correct 馃檪
thanks alot
Great appreciation
Thank you 馃檪
Thanks I think I got it now.
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?
@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.
Thanks a lot
This example is the best description of FIFO and AVCO method.
so much help ….thanks
gr8 work