Costing:Concept of equivalent units.
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Can anyone tell me the answer to this i did it in class this week n a cannot remember how i arrive at the total cost, it doesnt make any sense!
In a given period production and cost data were as follows
materials: £5115
labour: £3953
Overheads: £3000
12067
Production was 1400 fully complete units and 200 partly complete units the degree of completion was as follows:
mat: 75%
lab: 60%
o/h:50%
so an extract of my answer to this i have:
cost element equiv in wip fully completed units
materials 200x75%=150 1400
total cost cost per unit
545 3.30
How is the 545 worked out?
cheers
In a given period production and cost data were as follows
materials: £5115
labour: £3953
Overheads: £3000
12067
Production was 1400 fully complete units and 200 partly complete units the degree of completion was as follows:
mat: 75%
lab: 60%
o/h:50%
so an extract of my answer to this i have:
cost element equiv in wip fully completed units
materials 200x75%=150 1400
total cost cost per unit
545 3.30
How is the 545 worked out?
cheers
0
Comments
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Re:Costing:Concept of equivalent units.
I'm not entirely sure what you mean by 'total costs' in this context so it's hard to say.
Just working through the materials bit:
Total eq units = 1400 + 150 = 1550
Cost/unit = 5115/1550 = 3.3
Value of WIP = 3.3 x 150 = 495
Working through the other costs I didn't have 545 coming up anywhere. I guess that's not much help but was a useful bit of revision for me anyway!
Chris0