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Process Costing – Question 8a.11

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Process Costing – Question 8a.11

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • January 31, 2021 at 1:26 am #608615
    celineam
    Participant
    • Topics: 9
    • Replies: 5
    • ☆

    Hey John,

    I’m a little confused about Question 8a.11
    I understand the question completely however the answer in the BPP Revision Kit does not include the opening work in progress when calculating the equivalent units and in the lectures it was included. Why is this?

    January 31, 2021 at 8:36 am #608635
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54751
    • ☆☆☆☆☆

    They are including the opening WIP in the answer.

    Because the question is using the weighted average method, we take all of the opening WIP and all of the units that were started and finished this period. In total this is all of the units that we finished ((9,850) – that includes the opening WIP because they are part of those that got finished this period.

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