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The following refers to a process for a period
units input to process 4500
units fully completed 3900
cost per equivalent unit $10.00
CWIP was 30% complete . there was no OWIP and no lossses in the processWHAT IS THE VALUE OF INPUTS TO THE PROCESS
A. 40000
B. 39000
C. 43200
D. 45000
PLZZ somebody solve this question
thanz in advance- Topics: 0
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Inputs to the process should be:
Finished units 3900 units x $10 = 39,000
CWIP 600 x .30 x $10 = 1800
Total costs $40,800Please check the answer in option 1, it must be 40800.
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Valuation is asked for the inputs, not the cwip or finished goods so there should not be any calculation for the cwip with respect to percentages, my calculation goes as under:
Finished goods: 3900* $10/E.U= $39000
CWIP: 600* $10/ E.U= $6000
so, $39000+ $6000= $45000
The calculation mentioned above for CWIP is the method when requirement states for the value of CWIP , here the question states the reverse i.e value of total inputs.Am I missing something, if I were to say that the answer (which tallies with Sarah’s answer) is simply the units that were input * cost per unit? In other words, $4,500 * $10?
Also, can I ask, does cwip mean current work in progress? What does owip mean?
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yes ryt, but i doubt u r an accounting student n that too frm ACCA, CWIP n OWIP r abbreviations for opening work in progress n closing work in progress.
If I understand you correctly Sarah (because it doesn’t make sense grammatically) are you saying that you doubt that I am studying ACCA? If so, what a bizarre thing to say! I’m studying as a “distance learning” mature student.
Thanks for clarifying the abbreviation though.
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haha let me make it clear,the answer that rehmanvohra gave is the correct one.Sarah please look at the last sentences ” there was no OWIP and no losses in the process”,what is the use of this sentence?It is actually to tell you that in the process account,debit side only include input and the credit side includes finished goods and closing WIP.With this information,you will know that if you can find out the value for finished goods and closing WIP,then you can add it up and that’s the value of units input.Calculation is just like what rehmanvohra wrote 🙂
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where did the question come from? go n chek out again the available options as answers..
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if ur answer is ryt that matches with Rehman Vohra then y it isnt matching with ny of the available options?
where is answere?.. it doesnt match ..answere should b 40800.. coz there is no scrap value or opening stock..
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