Assume the Following: WIP, Beginning 4500 Units (100% Complete as to Direct Materials

question 29

Multiple Choice

Assume the following:
WIP, beginning 4500 units (100% complete as to direct materials, 40% complete as to conversion costs)
Started 12,500 units during the period
Total spoilage is 800 with normal spoilage is calculated to be 350 units
Completed and transferred out during the period 10,000 units
WIP, ending 6200 units (100% complete as to direct materials, 50% complete as to conversion costs)
Spoiled units 800 and inspection happens when the process is 30% complete
All materials are added at the start of the process
Under the weighted average method, would would be the equivalent units of work done for the period?

• A) 9405
• B) 10,000
• C) 6200
• D) 13,340

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Definitions:

AASB 6/IFRS 6

An accounting standard which applies to the exploration and evaluation expenditures incurred by an entity in its exploration for and evaluation of mineral resources.

Industry Specific

Pertaining to conditions or practices unique to a particular industry, trade, or field.

Differential Reporting

Provision within accounting standards or a regulatory framework that facilitates different reporting requirements for different categories of entities.

Accounting Policies

The specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements.