Question: Basic. A company operates a process costing system using the first in, first out (FIFO) system of valuation. No losses occur in the process. The

Basic. A company operates a process costing system using the first in, first out (FIFO) system of valuation. No losses occur in the process. The following data relate to last month:

Opening work in progress Input to the process Completed production Units 200

Last month the cost per equivalent unit of production was £20 and the degree of completion of the work in progress was 40 per cent throughout the month.

(a) What was the value (at cost) of last month's closing work in progress?
(A) £1224 (B) £1280 (C) £1836 (DB) £1920

(b) What was the cost of the 1040 units completed last month?
(A) £19200 (B) £19930 (C) £20730 (D) £20800 ACCA Financial Information for Management

Opening work in progress Input to the process Completed production Units 200 with a total value of 1530 1000 1040

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