CA Inter P4 · Chapter 9 · Question 4 of 11
Opening work-in-progress was 2,000 units, 60% complete as to conversion. During the period 18,000 units were introduced and 16,000 units were completed and transferred. Closing work-in-progress was 4,000 units, 50% complete as to conversion. There were no losses. Equivalent units for conversion cost under the FIFO method are:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 16,800 units
Explanation
Under FIFO only work done in the current period is counted. Completing opening WIP: 2,000 x 40% = 800. Started and completed: 16,000 - 2,000 = 14,000. Closing WIP: 4,000 x 50% = 2,000. Equivalent units = 800 + 14,000 + 2,000 = 16,800.
More Process and Operation Costing MCQs
- Q6Under the FIFO method, equivalent units for conversion in the current period are 16,800 and conversion costs incurred in the current…
- Q7The main purpose of transferring output from one process to the next at a price that includes profit (inter-process profit) is to:
- Q8Operation costing is best described as:
- Q9In process costing, units of abnormal loss are valued at:
- Q10The cost of normal process loss is borne by: