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ACCA F2 Process Costing – Work-in-Progress part b
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this lecture was of great help. That you very much!
Thank you for your comment 🙂
Sir John Moffat!! am waiting for you response.
I don’t understand how $9000 from 60% of 15000 units is used for overheads when its opening inventory. Are we not supposed to use finished goods inventory to find the cost per unit but you used opening stock to calculate cost per unit instead of 40%. please explain.
what is the solution in which the normal loss 10% with 50% conversion cost
I don’t know what you are asking!
in a particular process 2000 units the normal losses expected 10% out of the loss only 50% completed in conversion cost then how to account that
what’s the solution for having two or more process account
Each process account is dealt with in the same way. The output from one process of ‘finished’ items is the input for the next process.
is there only one procedure to calculate final process and loss account
You would only be asked to deal with one of the processes in the exam, but the procedure is the same for all processes.
Ignore the duplicated question 🙂
good day, Please reply.
What is the purpose of costing in retrospect?
I see that we are given the money already spent for the month as well as the amount of items already produced and sold. which means that its at the end of the month, after everything has already gone down, that we are trying to find a unit cost.
Is the purpose of this a comparative one? i.e comparing the estimated unit cost arrived at at the beginning of a month vs the actual unit cost that the goods should have been sold at?
thank you
The purpose of costing is to know the cost per unit (so that, for example, we can decide on a selling price in order to make a profit).
It is also need in order to value closing inventories and closing work-in-progress.
It has nothing to do with comparatives.
Have you also watched all of the earlier lectures?
Sir, thank you for the awesome lectures. I had a doubt in the first method of calculating the finished units this month. How do you get the 40000 units figure?
Thanks
Ugh, nevermind. Got this too.
am pleased that you got it (and thank you for the comment) 🙂
You are absolutely brilliant. Thank you so much for your lectures. Make things so much easier to understand.
Thank you very much for your comment 🙂
thank you for making costing understandable! you are the best lecturer I have ever had in management accounting. God bless you!
Thank you for the comment 🙂
where did we get $0.83?
If you watch at around 20:00 you will see how we get it! We divide $24,900 by 30,000!
oh ok Sir, ignore my previous question on how you got $0.83%
thanks alotttttt!!!!!! You are the best MA lecture I have seen!!! God bless you ! 🙂
Thank you 🙂
I am a Final Year student from Hong Kong who is majoring in Accountancy (B.B.A.), Your explanations are absolutely fantastic and very useful for my revision in both college exams and ACCA Professional Level Exams. Thanks a lot !
Thank you for your comment 🙂
The Lecutre recorded keeps breaking and some key areas being discussed are not showing. There’s also a green screen that appears now and then. I have tried to access it in different systems and the problem is still the same.
Is it possible to make another link available?
The lecture is working fine. You should go to the support page – the link is above.
Working through the costing process has been extremely helpful.
Thank you very much
You are welcome – I am pleased that the lectures are helpful.
Hello.
Closing WIP is always valued at half?
Of course not! It is valued at whatever % of work has been completed.
You really should watch all of the lectures on process costing.
Okay. Thank you
where did the $0.83 come from when you were valuing closing WIP? i thought the cost per unit for materials was $1.38
Also, i don’t understand why you computed the value of materials only when finding the cost of the 25000 units made this month.How come conversion costs aren’t calculated?
The cost per unit for materials is not $1.38 at all, and conversion costs were calculated when valuing the completed units!!!
Because of the different stages of completion we have to calculate the cost per unit for materials and the cost per unit for conversion costs (labour + overheads) separately, and I go through the workings of both of these in the lecture. Materials is $0.83 per equivalent unit, and conversion costs are $0.55 per equivalent unit. The total of the two ($1.38) is the full cost this period of a finished unit.
Are you sure you watched the whole lecture?
I do suggest that you watch it again carefully. Maybe it will help you if you have the answer at the back of the lecture notes in from of you while you watch it.
Sir the way you explain is superb(Y) 😀 so clear.
Thank you very much 🙂