ProcEss costing – Work-in-ProgrEss

This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.

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March 13, 2014 at 12:06 pm #162225
maas
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Sir,

Test Question 8 & 9, It says,

“conversion costs are incurred evenly through the process.”

can we take units equally?? Please help,
March 13, 2014 at 12:34 pm #162230
John Moffat
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All it means is that if (for example) a unit is only 40% finished, then it will have had 40% of the conversion costs.
(Unlike materials where they units incur 100% of the cost as soon as they are started.)
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