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P.S for P289 Mock Test 2 Question 18 & Question 19

WIP T Account

O/B 5,000 Liters--- | Normal Loss (3%*50,000 Liters) 1,500 Liters Input 50,000 Liters | Abnormal Loss (calculation balance ) 500 Liters --- | OutPut 49,000 Liters --- | C/B 4,000 Liters - 55,000 ---| 55,000

Equivalent Unit:

Material Cost: $2,925 + A ($37,200)=$40,125 Equivalent Units: 500+49000+4000*100%=53500 Cost /unit = $40,125/53500 =$0.75

Conversion Cost: $6,600 + $62,385 = $68,985 Equivalent Units:500+49000+4000*40%=51100 Cost /unit =$68,985 /51100=$1.35