- This topic has 1 reply, 2 voices, and was last updated 5 years ago by
.
- Posts
Process B had no opening inventory. 13,500 units of raw material were transferred in at $4.50 per unit. Additional material at $1.25 per unit was added to the process. Labor and overheads were $6.25 per completed unit and $2.50 per incomplete unit. If 11,750 completed units were transferred out, what was the closing inventory in process B (to 2 decimal places)?
Please do not simply type out full questions and expect to be provided with a full answer. You must have an answer in the same book in which you found the question and so in future ask about whatever it is in the answer that you are not clear about. Then I will explain 🙂
The closing WIP is 13,500 – 11,750 = 1,750 units.
Given that the WIP is incomplete with regards to labour and overheads, the value of the WIP is 4.50 + 1.25 + 2.50 = 8.25 per unit.
Have you watched my free lectures on process costing? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
- You must be logged in to reply to this topic.