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Mr. John
I have a question about input and output levels which are used in work in progress.
for example:
OWIP 500 units
2400 units inputs
CWIP 600fully completed units will be 1800 unit?
and if we are given outputs instead of inputs. the answer will be 500+2400-600=2300 unit?The fully completed units will be 500 (already in progress) plus 2400 ( started this period) less 600 (closing WIP) = 2300 units.
If, instead, the output was 2400, then the input would be 2400 – 500 = 1900.
I want to clarify one more question that is given in the book.
for example:
OWIP 100 unit
950 inputs
CWIP 150 unit
It is calculated like that INPUT OUTPUT
100+ 100+150=250
950 Finished Good 800@
=1050@ = 1050
And finished good is recorded by 800 unitI don’t know which book you are talking about.
If they start with 100 units and input another 950, then they are hoping to finish 1,050. Since 150 remain unfinished, then the output of finished goods must be 1,050 – 150 = 900.
(800 are done from start to finish this period and so if FIFO is being used then 800 will be valued at this periods cost per unit, and the other 150 will be valued at the value of the opening WIP plus the cost of finishing them).
I do suggest that you watch our free lectures – they are a complete course for Paper F3 and go through everything you need to be able to pass the exam well).
Yeah I compared it with the book and detected that it was given 800 finished good in the fifo method.
Clear 🙂
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