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-at the start of last month 300 units valued at $1710 is 60% complete.
-cost per equivalent unit is $10
– 2000 units are completed, then what is the value of the 2000 units?Why is the $1710 of the 300 units that are only 60% complete added as it is to the overall value of the 2000 units finished?
is it because the 1710 is the current value of the 300 units that are only 60% completed and when it is fully completed (remaining 40% done), does it become full value of the 300 units?
thank you
The value of the finished units is the total cost of producing them.
Part of the cost was incurred in the previous period and part was incurred in the current period.
Have you not watched the free lectures, because I explain this in the lectures.
(It is pointless to use the lecture notes without watching the lectures, because it is in the lectures that I explain and expand on the notes. If you are not watching the lectures for any reason then you need to buy a Study Text from one of the ACCA approved publishers and study from there.)
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