mc100202563 Tayyba
show details 12:24 AM (21 hours ago)

If the cost per equivalent unit is Rs. 1.60. The equivalent units of output are 50,000. The WIP closing stock is 10,000 units, 40% completed. What will be the value of closing stock?
► Rs. 9,600
► Rs. 80,000
► Rs. 16,000
► Rs. 6,400


mc090205074 Naseer Ahmad Nasir to Tayyba
show details 3:21 PM (6 hours ago)
VERY SIMPLE..
WE R ASKED TO CALCULATE THE VALUE OF CLOSING STOCK..
WE HAVE 10000 UNITS AS CLOSING STOCK IN WIP ACCOUNT
DATA SHOWS THAT THESE UNITS R 40% COMPLETED..
NOW WHEN WE WILL SOLVE DIS QUESTION
FIRST WE HAVE TO CALCULATE THE UNITS EQUIVALENT PRODUCED ..
10,000 * 0.40 = 4,000

IT MEANS THAT 10000 UNCOMPLETED UNITS ARE EQUIVALENT TO 4000 COMPLETE UNITS..
AND
NOW WE WILL GET IT MULTIPLIED WITH COST PER UNIT WHICH IS Rs. 1.60

4000 * 1.60 = 6,400

I THINK U WILL BE GET IT CLEARED NOW..
IF NOT..
I CAN EXPLAIN IT AGAIN..

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