Can someone please explain me why the answer for the below questions in 850. The questions is related to process costing.
vinay mendon (compliance analyst) (32 Points)
07 September 2014Can someone please explain me why the answer for the below questions in 850. The questions is related to process costing.
CA Saroj Kumar
(Keen to learn something new every moments)
(2588 Points)
Replied 07 September 2014
Might be answers which u are looking is wrong....
CMA Sanjay Hakhu
(GM-Finance & Accounts)
(65 Points)
Replied 07 September 2014
| OUTPUT | |||||||||
| INPUT | MATERIAL | LABOUR & OVERHEADS | |||||||
| UNITS | UNITS | % |
EQUIV UNITS |
% |
EQUIV UNITS |
||||
| OP. WIP | 400 | FINISHED FROM OP WIP | 400 | 100 | 400 | 60 | 240 | ||
| INTRODUCED | 1000 | FINISHED FROM INTRODUCED | 400 | 100 | 400 | 100 | 400 | ||
| CL. WIP | 600 | 75 | 450 | 20 | 120 | ||||
| 1400 | 1400 | 1250 | 760 | ||||||
Apart from Op. WIP, above total equivalent units of material for the period (i.e., introduced and closing WIP are 850 units).
vinay mendon
(compliance analyst)
(32 Points)
Replied 07 September 2014
@ CMA Sanjay Hakhu: thank you for the Answer. I am actually getting confused on why closing WIP is calculated 75%. If you can explain that part that would be help ful.
CMA Sanjay Hakhu
(GM-Finance & Accounts)
(65 Points)
Replied 08 September 2014
CAclubindia
