Equivalant Units Flashcards
1
Q
What are the three types of inventory or stock used in equivalent units ?
A
. Raw materials
. Finished goods
. Work in progress (WIP)
2
Q
How is Equivalent units calculated ?
A
Number of units X degree of completition.
eg. 20x50% = 20 pots,etc
3
Q
How to work out cost per equivalent unit ?
A
Total cost / total amount inc % of work complete
4
Q
How to work out Total value of WIP ?
A
WIP X CPU
Then add all together for total value.
5
Q
What is opening WIP ?
A
The proportion required to finish the units and not the degree in which already complete.
6
Q
How do you calculate open WIP?
A
Use the difference between 100% and the proportion already complete.
eg. Opening WIP is 70% complete for materials which means that there is only 30% needed to complete them.
