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? Hi All folk,
I cant get the answer for Q9 at page 72, chapter 9, please help to provide solution or checking my solution, just do not know where goes wrong,
costing material conversion
51000 193170
unit
op wip (200 x 40%) 800 800
start to finish 12000 12000
c l wip (3000×30%) 900 900
total 13700 13700cost per unit 51000/13700 193170/13700
= $3.72 = $14.1thus value of closing wip
material = 3000x 30% x 3.72=3348
conversion = 3000x 30% x 14.1=2690
Total =16038
however the given answer is D, $22890
where goes wrong
please help, thanks in advance.
also may email me at shtan2004@yahoo.comHi there,
You have included 800 units for materials in opening wip which should be 0.
You have also used 900 units for closing wip which should be 3000.
The reason is that the question states that all materials are input at the commencement of the process, thus you do not need to account for materials in opening wip as it has already been accounted for in the previous period but you do need to account for the whole 3000 units for the last period as the only work remaining relates to conversion costs.I hope this helps.
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