[Zoe]

Sorry I just put up the part of the question I didn’t get, below is the whole question, would be so grateful if you could help.

P is a cosmetics manufacturer, if manufactures a single product in a single stage production process. It is the 1st of April 2012, and you have commenced a new job as management accountant for P.

Amongst the data, you discover the following details for P’s production for the month of March 2012:

Opening WIP: 10,000units
Complete: 40,000 units
Closing WIP: 15,000 units

P uses the FIFO basis of stock valuation. Opening work in progress is 30% complete with regard to material cost and 25% complete with regard to labour and OH costs; closing work in progress is 75% complete with regard to material cost and 50% complete with regard to labour and OH costs.

Costs incurred during the March: Direct Material cost: $241, 250 and OH: $135,000

Additional information for the month of March
Materials 1 March: $25,000
Materials 31 March: $30,000

Work in Progress 1 March 2012:
DM: $10,000
Direct Labour and OH: $6750

a) compute the equivalent units of P for March
b) calculate cost per equivalent unit for March
c) compute the cost of completed and unfinished production for March
d) prepare the schedule of cost of goods manufactures of P for the month of March.

[Zoe]

Woops, sorry.

If the qn states that opening work in progress is 30% complete with regard to material cost and 25% complete with regard to labour and OH costs; closing wip is 75% complete with regard to material cost and 50% complete with regard to labour and OH costs.

Given: costs incurred during the month: DM cost: $241, 250 and OH: $135,000

Materials 1 May: $25,000
Materials 31 May: $30,000

WIP 1 May 2012:
DM: $10,000
Direct Labour and OH: $6750

How do you get the equivalent units for May?

Quite confused because usually they state 50% of the WORK and not the COST is completed.

Thanks!

[Author]

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