NG Plc uses process costing. The costing inventory for period 1 was 8000 units which were 50% completed as per material and 50% complete as per conversion cost while the cost and for material and conversion was 20000 and 10000 respectively. In period 2 1600 units of material were added as input in with a total cost of 40000. The conversion cost for the period was 20000. 20000 units were completed in the period 2. The closing WIP was 100% complete as material and 50% complete as per conversion cost. There were no losses in the period. Using AVCO method calculate the cumulative cost per unit for period 2.
ans) 3.9 How to find closing inventory?
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Process Costing AVCO Method
3y ago#1This is all explained in my free lectures on process costing (AVCO is another expression for the weighted average method of dealing with WIP).
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