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hello sir, i have been having some difficulty in this question, could you please help me sort it out?
using FIFO,, the following info. is available:
opening WIP (200 UNITS AT $1530)
Input to the process( 1000 UNITS)
Completed production (1040 units)
The cost per unit was $20 last month and the degree of completion of the WIP was 40% throughout the month. calculate:
-value of closing WIP
-value of the 1040 completed units last monthnow i managed to work out the value of the closing WIP and i got $1280 but the value of the completed units is a bit difficult for me. Thanks in advance
In future you must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
The first 200 units completed were the opening WIP. They will be valued at the 1530 already spent, plus the cost of finishing them which is 200 x 60% (to finish) x this periods unit cost.
The remaining 840 units completed were all done this period and so will be valued at this periods unit cost.I do suggest that you watch the free lectures on process costing.
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