- June 11, 2021 at 5:07 pm #624736Khadijabutt17Participant
- Topics: 2
- Replies: 0
A company operates a process in which no losses are incurred. The process account for last month,
when there was no opening work-in-progress, was as follows:
Costs arising 624,000 Finished output (10,000 units) 480,000
Closing work-in-progress (4,000 units) 144,000
The closing work in progress was complete to the same degree for all elements of cost.
What was the percentage degree of completion of the closing work-in-progress?
? 75%June 12, 2021 at 7:21 am #624884John MoffatKeymaster
- Topics: 56
- Replies: 51575
The cost per unit of the finished output is 480,000/10,000 = $48 per unit.
The cost per units of the closing WIP is 144,000/4,000 = $36 per unit.
Therefore the % completion of the WIP = 36/48 = 75%
Have you watched my free lectures on process costing? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
- You must be logged in to reply to this topic.