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.