[Naomi22]

Another one from me please! If we have OWIP 200 units (70% complete), 2650 units fully completed and 500 units of CWIP (40% complete), why do we have only 2710 EU of production?

We are not given any indication in terms of FIFO or ADVCO method, therefore i would have calculated the 70% of OWIP completed, then added up the complete units and the 40% of CWIP that has been completed to get to the total EU of production.

Effectively this would be 140+2650+200 =2990 but solutions seem to suggest 140-2650+200 instead? why are we subtracting OWIP?

thanks

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