PROCESS COSTING

Question 1

Has Closing WIP but don’t have Opening WIP 3rd scenario

Answer 1

It is some units that haven’t completely finished and it is cannot be transferred to the next process

Question 2

What is Closing WIP?

Answer 2

Units that are partially completed, only in part finished/ completed.

Question 3

The formula for has Closing WIP but no Opening WIP

Answer 3

Equivalent Units =

No. of units partially completed * percentage of completion = CLOSING WIP

Question 4

When there is WIP (OPEN OR CLOSE) 4 steps need to be followed

Answer 4

1. Prepare “Statement of Equivalent Units
2. Prepare “Statement of Cost
3. Prepare “Statement of Evaluation”
4. Prepare “Statement of Cost”