Page 230 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 230
Chapter 9
Test your understanding 4
(a) The number of equivalent units of labour is 1,250.
The weighted average cost method is used, so OWIP cost is included in
the calculations of equivalent units.
OWIP + Input = Output + CWIP
400 + 900 = 800 + 500
Total Equivalent units
units
Materials Labour Overhead
Finished output 800 800 800 800
CWIP 500 500 450 200
_____ _____ _____ _____
Total equivalent units 1,300 1,300 1,250 1,000
(b) The value of completed output for the period was $322,400.
Costs Materials Labour Overhead Total
$ $ $
OWIP 49,000 23,000 3,800
Incurred during the period 198,000 139,500 79,200
______ ______ _____
Total costs 247,000 162,500 83,000
Cost per equivalent unit $190 $130 $83 $403
Therefore the value of completed output = 800 units × $403 = $322,400.
(c) The value of CWIP for the period was $170,100
(500 × $190) + (450 × $130) + (200 × 83) = $170,100
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