[tspowersia]

Sir, thank you for the prompt reply and clearing my doubts. Have a nice day! 🙂

[tspowersia]

That’s alright sir. Thank you for explaining the “materials and conversion costs” part and then why should it be 15,000 units. Much appreciated! Have a great day ahead! 🙂

[tspowersia]

Hello again sir, I tried to work it out again and it seems that if we divide the materials cost ($51,000) by the “total no. of units input” which is (15,000) instead of (17,000), and the rest of the steps remained the same…

Material cost per unit = 51,000/15,000 = $3.4 per unit
Conversion cost per unit = 193,170/13,700 = $14.10 per unit

WIP c/f for materials is 3,000 x $3.4 = 10,200
For conversion costs is 3,000 x 30% x $14.10 = 12,690
Total = 10,200 + 12,690 = $22,890

So this has matched with the correct answer (D) given in the notes. Sir, could it be this way instead?

[tspowersia]

Thank you sir for the promptly reply, your explanation has been very helpful! However, I’ve realised that your answer of $21,690 is the option B while the answer given in the notes is actually ($22,890) option D. Could you please take another look? Thank you again for your time sir.

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