The following process account has been drawn up for the last month:

Process account

Units

£

Units

£

Opening

250

3 000

Normal loss

225

450

Input:

8 125

Output

4100

Materials

4500

22 500

Abnormal Loss

275

Labour

37 500

Closing WIP

150

4750

4750

Work in progress has the following level of completion:

Material

Labour

Opening WIP

100%

40%

Closing WIP

100%

30%

The company uses the FIFO method for valuing the output from the process and all losses occurred at the end of the process.

What were the equivalent units for labour?

A 4380 units

B 4270 units

C 4320 units

D 4420 units

Q26.

Perth operates a process costing system. The process is expected to lose 25% of input and this can be sold for £8 per kg.

Input for the month were:

Direct materials

3500 kg at a total cost of £52 500

Direct labour

£9625 for the period

There is no opening or closing work in progress in the period. Actual output was 2800kg.

What is the valuation of the output?

A £44 100

B £49 700

C £58 800

D £56 525.