Figure 5-4
the Following Information Is Available for Department X

question 1

Multiple Choice

Figure 5-4
The following information is available for Department X for August: $\begin{array}{lr}\text { Work in progress, August } 1\\\text { Materials } & £ 8,000 \\\text { Conversion costs } & £ 15,000\\\\\text { Costs added during August:}\\\text { Materials}& £ 28,000 \\\text { Conversion costs}&£ 25,000 \\\\\text { Equivalent units of production (weighted average) :}\\\text { Materials}&4,000\\\text { Conversion}&5,000\\\end{array}$
-Refer to Figure 5-4. Department X's cost per equivalent unit for materials using the weighted average method would be

• A)£2.00.
• B)£7.00.
• C)£8.00.
• D)£9.00.

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Definitions:

AASB 128

The Australian Accounting Standards Board standard related to the accounting for investments in associates and to set out the application of the equity method when accounting for investments in associates and joint ventures.

Market Valuation

The process of determining the market value of an asset or company, based on supply, demand, and other economic factors.

Active Market

A financial market in which securities or commodities are frequently traded, showing significant liquidity and pricing information.

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of an investee but is not control or joint control over those policies.