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Company uses process costing for valuing the units produced.
The following data is available:
Units started in process 5,500
Units completed 4,200
Cost per equivalent unit Rs. 12
Work in process at the end of the period was 40% complete as to material and conversion cost.
No opening work in process was at the start of the process.
What is the value of inputs made to the process for this period ended?Thanks in advance!
I will answer, but surely the book in which you found the question also contains the answers? It is better if you say what problem you are having so that then I can try and help you.
The value of the inputs is the number of equivalent units x cost per equivalent units.
4,200 units were completed and the remaining 1,300 were only 40% complete.
So the equivalent units are 4200 + (40% x 1300) = 4,720
You know the cost per equivalent unit, so now you can calculate the answer 🙂
You will find the free lectures on Process Costing to be useful.
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