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In a production process the percentage completion of the work?in?progress (WIP) at the end
of a period is found to have been understated.
When this is corrected what will be the effect on the cost per unit and the total value of
i understand that the cost per unit will decrease as there will be more equivalent units as more work will be completed
can u please explain what happens to the total value of WIP?
It is impossible to say, because the equivalent cost per unit will be lower but the % included in the valuation of the WIP will be higher.