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  • 1.  PROCESS COSTING - WA Method

    Posted 04-26-2022 03:00 PM
    need help understanding this question. how did he reach the 46 in units started and complted.



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    Tayba Al-Mehdar
    Controller
    Khobar
    Saudi Arabia
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  • 2.  RE: PROCESS COSTING - WA Method

    Posted 04-27-2022 02:29 AM
    The total units started at this period is 70000 and the ending inventory is 24000 so started and completed is (70000-24000) 46000 units

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    Ahmad Salou
    Student
    Amman
    Jordan
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    Original Message


  • 3.  RE: PROCESS COSTING - WA Method

    Posted 04-27-2022 02:29 AM
    Hello Tayba,

    At the beginning, the Question says that the Materials are added at the beginning so under the weighted-Average Method we will consider The EUP for Materials are Full (100%),
    Knowing that the Beginning WIP is 30,000 and Started is 70,000 So the Materials Is 100,000
    As for the Conversion Cost, You have to take the Full amount of the Completed Units and the Portion of Completion Of EWIP, Knowing that the Total amount is 100,000 so the Total amount Minus the Ending WIP is 
    100,000 - 24,000 = 76,000 Units (For the Completed Units)
    If you need to make this amount into Beginning and Started & Completed amounts , You Shall get the Started & Completed units by Subtracting the Beginning WIP from the Completed Units 76,000 - 30,000= 46,000
    As for the rest you shall Multiply the 25% By the EWIP for the CC to get 6,000 EUP for EWIP
    So the Answer is 100,000 For Materials and 76,000 + 6000 = 82,000 EUP for the Conversion Cost.



    Original Message


  • 4.  RE: PROCESS COSTING - WA Method

    Posted 04-27-2022 07:50 AM

    Prior to approach Test Bank , juz go through the text book once, regarding the concept of Process costing  and 

    how the things are taken into consideration , when we follow FIFO/WAVG, also about the admission of Raw material in different point

    of time, its quite easy. If you will search the specific answer of the specific question, then it will make things more difficult.



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    G. Prasad
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    Original Message


  • 5.  RE: PROCESS COSTING - WA Method

    Posted 05-15-2022 07:30 AM
    thanks mohanty

    i already went through the book. weily /gleim and hock.

    for me understanding the questions gives me a better understanding.

    regards,

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    Tayba Al-Mehdar
    Controller
    Khobar
    Saudi Arabia
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    Original Message