Process account.

1000 + 10000 + 12000 - 3000= 20000 on a sales value basis P 4000 units* $5=20000 R 6000 units *$10= 60000 Total= 20000+60000=80000 R= (60000/80000) * 20000 = $15000 cost per unit of R= $15000/6000 units = $2.5

alighere: the answer from yaaseen is correct yaaseen: thank you for answering, but please do not answer in this forum because it is Ask the Tutor (and you are not the tutor :-) ). Please restrict yourself to answering in the general F2 forum.

ok John sir :)

Thank you :-)

Hello tutor, I have a question: why the sales value basis is calculating by multiplying sales price per unit with production units, instead of sales units? Thank you!

Because the costs are the costs of what is produced, whether or not the production is all sold or remains in inventory.

Because the costs are the costs of what is produced, whether or not the production is all sold or remains in inventory.

Oh I see. I just got a bit confused with the wording. Now everything is clear. Thanks a lot for your help. Much appreciated!

You are welcome :-)