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can someone solve this f2 ques:
A company uses the FIFO method to value work-in-progress and output . The following relates to this procedure for a period :
work-in-progress // units // degree of completion
opening // 1000 // 40 %
closing // 800 // 30 %
During the period 4000 units were introduced into the process.
How many units were both started and completed in the period ?I think the answer is, 3200 units
transfer from process 2 – closing inventory ( FIFO method)
4000 – 800= 3200 unitsCorrection
the answer is
total output 4000
less opening WIP (completed first) 1000
= 3000 units
As we are dealing with FIFO method, opening WIP must be completed firstUntil here we are the same but dont you think that we should substract the closing W?P as it is not completed????
3000- 800????
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