(a) Define the term equivalent production and state when the principle is used. (b) During May 20X1,...

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(a) Define the term equivalent production and state when the principle is used.

(b) During May 20X1, M Wurzel & Co. Limited’s output was 4,000 finished items plus 600 partly finished items. There was no work in progress on 1 May 20X1.

Calculate for the month of May 20X1:

(i) The total equivalent production for each cost element;

(ii) The cost per complete unit;

(iii) The value of the work in progress.

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Frank Woods Business Accounting Volume 2

ISBN: 9780273693109

10th Edition

Authors: Frank Wood, Alan Sangster

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Question Posted: Sep 10, 2023 06:04 AM

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(a) Define the term equivalent production and state when the principle is used. (b) During May 20X1,...

Question:

Total cost (£) WIP degree of completion % Materials 8,172 90 Labour 7,120 75 Overheads 5,196 55 Total 20,488

Step by Step Answer:

a Equivalent Production a Equivalent production refers to the concept in cost accounting that quantifies the number of fully completed units that could have been produced from the materials labor and ...View the full answer

Frank Woods Business Accounting Volume 2

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