Index of all ACCA Paper F2 Management Accounting / FIA FMA Revision Lectures >> |
To fully benefit, download F2 Revision notes here: To download please login (registration is free) |
Revision notes page used in this lecture
Comments
Leave a Reply
You must be logged in to post a comment.
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
thanks alot
Great appreciation
Thank you
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