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June 30, 2020 at 9:22 am
Hi Sir, I really felt the need to compliment you on your compassion, confidence and intellect. Your notes are and have been of immense help to me. Thank you!
John Moffat says
June 30, 2020 at 9:46 am
Thank you for your comment 🙂
April 24, 2020 at 1:55 pm
Sir, thank you for your lessons.
Just 1 question regarding the T process, the output (finished goods) of 800 units = cost $9600 when we credit it to put those finished goods out of production process, which is the double-entry to do before we sell it (debit cash/receivable and credit sale).
Thank you in advance for your time and patience 🙂
April 25, 2020 at 10:35 am
We debit the finished goods account.
April 25, 2020 at 7:52 pm
But, after we have to debit it, we want to sell these finished goods, so how is done the double-entry, I mean the connection between credit these finished good since is output but meanwhile in the same time we should do the double-entry of credit sale and debit cash/reveivable.
I guess something is missing me.
Thank you in advance, sir.
April 26, 2020 at 9:22 am
We credit the finished goods account and debit the Statement of Profit and Loss with the cost of the goods sold.
However you are not examined on all the double entries in Paper MA.
April 27, 2020 at 12:58 pm
Thank you again, sir, for your fast reply which was very helpful to me.
April 27, 2020 at 4:03 pm
You are welcome 🙂
February 20, 2020 at 5:13 pm
Hello Sir, i have a question, can we have a question with Abnormal loss or gain merged with Work in progress???
April 3, 2020 at 4:15 pm
No – the examiner has said that questions will not examine both in the same question.
February 12, 2020 at 3:11 pm
Hello sir, i have a serious doubt about equivalent units. what i have understood about equivalent units is below, IF THE WORK DONE IS 100 UNITS AND OUT OF THAT HALF OF THE UNITS WERE FINISHED AND ANOTHER HALF WERE INCOMPLETE.THE COMPLETED 50 UNITS ARE CALLED EQUIVALENT UNITS. By applying this concept in questions, i cannot arrive to a correct answer. i would like to know that my conceptual knowledge is right or wrong.
April 3, 2020 at 2:05 pm
Hi fathah2000 you have to work it out according to material labor and o’heads
lets assume we are a company and we are making chairs and we have 200 chairs in wip. The material of those chairs is 100% ready so we don’t need to calculate the Equivalent units. When it comes to labor they are 60% so we calculate the EU which is 60% of 200 = 120 …. its like having 120 chairs 100% ready from labor. Same for the o’heads.
April 3, 2020 at 4:17 pm
I do make this point in the lectures – that materials are always immediately 100% complete unless specifically told otherwise. Have you watched the other parts of this series of lectures?
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