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I took my F2 CBE exam today (which I passed thankfully!), but there was one question in particular which baffled me, because the answer I thought it should have been wasn’t one of the multiple choice answers. Here’s the question – I hope I remember it correctly.
Opening units – 500 (20% complete)
fully complete units – 2400
closing inventory inits – 200 (80% complete)What are the total equivalent units using the FIFO method?
What I did was add opening units (80%*500), fully complete units (2400-200) and closing inventory units (80%*200). In other words, 400 + 2200 + 160 to arrive at 2760. This answer wasn’t available, so I chose 2960 instead!
What did I do wrong? Thanks.
hey
im sorry i dont understand!! y wud u add 80%. i mean only 20% was complete so ur going to send out 20% not 80% which is incomplete. do i make sense?
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I think your fully complete units is not correct. You should use S & F units for this period instead which is 1900 únits. Do you see answer 2460?
I would have thought it was a simple answer.
2400 compete units plus 80% of the closing inventory complete.So 2400 + 180 = 2380 complete units?
Hi guys,
Thanks for all your responses. It’s been a while now since I took the exam, and I can’t remember all the multiple choice options now. Also, I think I’ve forgotten how to go about doing fifo process costing! I’ll look at all your replies in more detail later, and see if I can get it in my head.
opening invetory $ 500 of 20% = 400
completed units during this period (500-2400) = 1900
closing stock = 160
Total units =2460
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