In a production process the percentage completion of the work?in?progress (WIP) at the end
of a period is found to have been understated.
When this is corrected what will be the effect on the cost per unit and the total value of
the WIP?
Cost per unit Total value of WIP
A Decrease Decrease
B Decrease Increase
C Increase Decrease
D Increase Increase
THE ANSWER IS B I GET THE COST PER UNIT but WHAT i DONT UNDERSTAND is WHY does THE value of work in progress increase/?
Ask the Tutor ACCA MA
CLOSING WIP
3y ago#1The % complete has been understated.
Therefore the WIP is more complete and if it is more complete then more will have been spent on it.
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