[saraverzin]

Thank you very much – your first sentence was the missing piece for me to understand!
Good day!

[saraverzin]

Hi Sir good morning,

I am having the same exact difficulty here. Please explain what the calculation below related the “other costs” is expressing.

The Other Costs are 40% fixed
$20 x 60% x 40% = $5

Would really appreciate if you can look into this and provide your explanation. I have been trying to understand how it comes out to $5 and the reasoning behind this calculation.

Thanks,
Sara

[saraverzin]

Hi good morning,

I am also attempting this question and I understand the workings but how is that the calculation for closing WIP?
Are we assuming that with all the work done in the month, we have not completed any units?
Since we are taking the full production cost of the month for both job 1 and 2.

Usually when we have closing WIP we need to calculate the completed units and deduct them?
Not sure whats missing for me to understand this question..

Thanks,
Sara

[saraverzin]

Yes I am following the video but still cannot understand what I’m doing wrong.
If the average is 3.475, the next step is to do x – average x
1 – 3.475 = -2.475
2 – 3.475 = -1.475
3 – 3.475 = -0.475
4 – 3.475 = 0.525
5 – 3.475 = 1.525

Next step is to square so (answers in order);
6.13
2.18
0.23
0.28
2.33

The sum of all this is 11.13

11.13/40 = 0.28

Square root of 0.28 = 0.53

Do you agree with my answer 0.53 please?
Appreciate your help

Thanks,
Sara

[saraverzin]

Hi I know it is a year late but I am having the exact same problem. It seems like there is a mistake here. I have no idea where the 12480 came from.

[saraverzin]

Understood! Thank you so much for your reply 🙂

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