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please kindly solve this for me. A company operates a process costing system using the FIFO method of valuation. No loses occur in the process. All materials are input at the commencement of the process. Concersion costs are incurred evenly through the process. the following dat relate to last period: Opening work in progress -units 2000 degree of completion 60%, total number of units completed 14000, closing work in progress 3000, degree of completion 30%.
Costs arising: 51000, Conversion costs 193,170.
what are the total number of units input during the last period? the options are 12000, 15000, 17000 and 13000.Please do not simply set test questions and expect an answer – you must have an answer in the same book in which you found the question!
(Unless you have been set this as homework and we are not hear to do your homework 🙂 )
The purpose of this forum is to help with any problems you have with anything covered in our free lectures, or with any specific problems you have understanding any of the answers in your book.The answer to your question is 14,000+3,000-2,000 = 15,000 units.
(14,000 were completed and 3,000 are still being worked on, which means there are 17,000 units in total. 2,000 of them were already being worked on at the start of the period and therefore the remaining 15,000 must have been input during the period.)However, you really should watch our free lectures on this, which do explain it in full.
Our free lectures are a complete course for Paper F2 and cover everything needed to be able to pass the exam well.
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Hello Sir,
I have watched the lecture on Process costing – FIFO.
Step 1: we sorted out the units. it was a T-account and on the debit side we had the opening WIP and the work started during the month and on the credit side we had the closing WIP. we were then able to find the finished units.So if we apply the same strategy to the example above, in the T-account we would have opening inventory: 2000 and input: 14000 and on the credit side we would have the closing inventory: 3000 and the finished units would be 13000.
So my answer would have been 13000 instead of 15000.Am I wrong? Please help!
Thank you 🙂Yes, you are wrong.
The question said that the completed (finished) units were 14,000 and that would appear on the credit side, as would the closing WIP of 3,000.
So the total on the credit side would be 17,000.On the debit side is the opening WIP of 2,000.
The missing figure on the debit side is therefore 15,000 and this is the input (which is what the question asked for).My original answer is correct 🙂
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Thank you Mr Moffat, you’re the Man! 🙂
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