Big Company uses the First-in-first-out (FIFO) method in their process costing system. All the materials are added at the beginning of the process and conversion costs are incurred evenly throughout the process. The work-in-process opening balance as at 1 January consisted of 600 units at a cost of R5 156. The Schedule of Equivalent units for January shows the following: Total Materials Conversion cost Units Rand Units Rand Units Rand Opening inventory 600 ? ? ? 240 ? Opening inventory on 1 January was ____ % complete with regards to materials, and ____ % complete with regards to conversion.
Big Company uses the First-in-first-out (FIFO) method in their
All the materials are added at the beginning of the process and conversion costs are incurred evenly throughout the process.
The work-in-process opening balance as at 1 January consisted of 600 units at a cost of R5 156.
The Schedule of Equivalent units for January shows the following:
|
|
Total |
Materials |
Conversion cost |
|||
|
|
Units |
Rand |
Units |
Rand |
Units |
Rand |
|
Opening inventory |
600 |
? |
? |
? |
240 |
? |
Opening inventory on 1 January was ____ % complete with regards to materials, and ____ % complete with regards to conversion.
| A. |
0%, 40%. |
|
| B. |
100%, 60% |
|
| C. |
100%, 40% |
|
| D. |
0%, 60%. |
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