CA Inter P4 · Chapter 9 · Question 5 of 11
Using the same data (opening WIP 2,000 units 60% converted, 16,000 units completed, closing WIP 4,000 units 50% converted), equivalent units for conversion cost under the weighted average method are:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) 18,000 units
Explanation
Under the weighted average method, opening WIP is merged with current work, so all completed units count in full. Equivalent units = units completed 16,000 + closing WIP 4,000 x 50% = 16,000 + 2,000 = 18,000.
More Process and Operation Costing MCQs
- 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:
- Q11Opening WIP of 1,000 units (100% material, 50% conversion) had costs of material ₹30,000 and conversion ₹15,000. During the month 9,000…