Forums › ACCA Forums › ACCA MA Management Accounting Forums › Conversion costs
- This topic has 4 replies, 2 voices, and was last updated 7 years ago by Tod.
- December 10, 2015 at 10:42 am #290143
Hm, operates a process costing system. 1000 units of a product remained incomplete in a process at the end of period . The closing work in progress 70% complete in respect of conversation costs which were 3 $ per equivalent unit in the period.
What was the amount of conversation costs included in the valuation of the closing WIP?December 11, 2015 at 7:14 pm #291174
????December 12, 2015 at 6:03 pm #291393
Maybe it’s a stupid question.
The answer is 2100$ ?December 13, 2015 at 9:48 pm #291558John MoffatKeymaster
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In future, if you wish for me to answer then you must ask in the Ask the Tutor Forum – this forum is for students to help each other.
If they were 70% complete, then the equivalent units are 70% x 1,000 = 700.
If the conversion cost is $3 per equivalent unit, then the total conversion costs are 700 x $3 = $2,100.
I really do suggest that you watch our free lectures – they are a complete course for Paper F2 and cover everything needed to pass the exam well.December 14, 2015 at 9:24 am #291667
Thank you very much mr. John!
I don’t know why but it was automaticly posted in forum )
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