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MA Chapter 13 Questions Process Costing – Work-in-Progress

 

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  1. Greetings,

    For Q4,
    It says all materials were input at the beginning of the process, not the end.

    So for Opening, we assumed 100% finished – so no cost incurred.
    But for the closing end, why dont we assume both material and labour = 30% work done – as that is the only information provided without specifying its for conversion cost or material.

  3. hi Sir, l did not undersrand why you used 3000 units when calculating material cost per unit. Is it not supposed to be the 12000 units for finished goods + equavalent units of finished WIP and closing WIP, or is it because we assume that finished WIP material and closing WIP material is 100% complete.

  4. hi sir according to ur last comment the process is same however the why the openiing wip was not taken as 40 percent to finish the process n why the closing inventory is all calculated as 3000 , it should be 30 percent though im talking about Q4 THANKS

    • Hi, I think the materials in all processes are 100% consumed.
      So we can list the following table:
      M L
      open 2000 100% 60%
      period 12000 100% 100%
      closing 3000 100% 30%

      Hoping my thought can help you!

  5. Q 3 – In your previous lecture you have discussed how to calculate finished units by drawing a T diagram. You haven’t mentioned input units in any of your lectures. Input units seem to be different from finished units. We calculate finished units by adding 2000+14000, balance it with closing units of 3000 on the other side, difference = 13000.

    So units completed from start to finish in this period is 13000 – 2000 = 11000

    Is input of units different to finished units?

    • I cannot remember whether or not I actually use the word input, but given that the input units means ‘units put in’ I hardly need to 🙂
      Input is units that are put in, and output is units that go out (i.e. finished units).

      • hi sir how are you thanks for the lectures
        same question as above pus, is total number of units competed this period includes the units of opening WIP although 2000 were introduced it should be a total of 16000 can you pls clarify.

        thanks

  7. In Q5 while completing Closing WIP, why we have added the additional material of $1,25? Since it was incomplete product, how can we understand whether products are incomplete by labour only or by both material and labour?

    Thank you..

  8. Question 4.
    Two questions:

    1. On material cost, why didn’t we include ony 30% of the WIP units but instead 100%?
    2. When we were calculating closing WIP at the final stage, why in case of materials we did not apply the completion rate of 30% while we applied it for the conversion costs?

    Thanks for the lectures!

      • hi nasima as far as this topic has been thought there is always a percentage of materials given in opening wip i hv same concern can you pls explain thanks

      • 14,000 units were completed, but 2,000 units were already work-in-progress at the start of the period. So only 12,000 we completed from start to finish.

        Did you not watch my free lectures before attempting the test, because I do show the importance of this when it is FIFO?

      • And so did I in my previous reply – read my first sentence. 14,000 were completed and of those 2,000 had already been started at the start of the period and the other 12,000 were therefore done from start to finish in this period.

        Please do watch my free lectures on this.

      • In the lectures, we included the closing WIP when sorting out the units. But as per your comment, it seems like we ignored. Why?

      • The closing WIP has not been ignored at all! Have you looked at the answer that appears when you submit and then review the test? The workings are exactly the same as the workings in my lectures.
        We take the 12,000 that have been fully completed together with the proportion of the opening and closing WIP completed during this period.

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