Page 162 - Microsoft Word - 00 ACCA F2 Prelims.docx

Chapter 9

Step 4 – calculate the cost per EU for each element of cost

Materials = $4860 ÷ 3,600 = $1.35

Conversion = $7,800 ÷ 3,250 = $2.40

Step 5 – value the outputs

Completed units = 2,600 × ($1.35 + $2.40) = $9,750

CWIP units = (1,000 × $1.35) + (650 × $2.40) = $2,910

Illustrations and further practice

Now try TYU question 4 from Chapter 9

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