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Hello Tutor, I don’t understand the below question asked in the textbook, which needs to calculate the working capital requirement.
“WIP represents two months’ half produced goods”
and the answer is
WIP:
(2 months @ half produced –1 month equivalent cost)Why will 2 months of half produced product be equivalent to 1 month material costs? thank you
It is hard for me to answer without seeing the whole question and the context of the question.
I can only assume from what you have typed that they are saying that 2 x 1/2 = 1 (which is, of course, perfectly true !!!)
If you had been watching my free lectures then you would not need to use the Study Text, because the lectures are a complete free course and cover everything needed to be able to pass the exam well.
Far, far more important (however you choose to study) is that you have a Revision Kit from one of the ACCA approved publishers. The questions there are all either past exam questions, or are exam standard questions, and practice on these questions is every bit as important as studying if you are to pass the exam.
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