Page 231 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 231
Process costing
Test your understanding 5
(a) The number of material-equivalent units produced was 30,000 litres.
(b) The number of conversion-equivalent units produced was 28,900 litres.
(c) The value of the completed output is $20,925
(d) The value of the closing work in progress is $5,390
Statement of equivalent units
Total Equivalent units
units Materials Conversion
OWIP completed 1,000 0% 0 30% 300
Units started and finished 23,000 100% 23,000 100% 23,000
CWIP 7,000 100% 7,000 80% 5,600
Total EU 30,000 28,900
Statement of cost/equivalent unit
Materials Conversion Total
$ $ $
Costs this month 14,700 10,115
Cost per equivalent unit 0.49 0.35 0.84
Completed units $
Opening WIP
Value b/fwd 1,500
Cost to complete = 300 EU ×$ 0.35 105
Units started and completed = 23,000 EU × $0.84 19,320
––––––
20,925
Closing WIP = 7,000 EU × $0.49 + 5,600 EU × $0.35 5,390
223
