Hi
Plz can u help me with this question.Thanks
Than Pele Ltd is a manufacturer. Than Pele using the FIFO method of valuation. The details of the first process in Period 2 are as follows:
OWIP = 400 units
Costs incurred so far
Materials $19,880
Conversion $3,775
Degrees of completion
Materials 100%
Conversion 25%
Completed output = 1,700 units
CWIP = 300 units
Degree of completion:
Materials 100%
Conversion 50%
Costs incurred in Period 2:
Materials $100,000
Conversion $86,000
What is the valuation of the closing work in progress?
A $7,371
B $26,121
C $18,750
D $145,136
I worked it out and got B($26121) as the answer but im not sure whether it is correct as i dont have the mark scheme for it,so may u plz check it for me? Thanks