Hornbill [Q-4 Aut-11]

(a) Equivalent production --------- Eq. units ---------

Units %
Dep-A Conversion
Completed units 39,500 100% 39,500 39,500

Closing WIP 10,500

- Material 100% 10,500
- Conversion
50% units 40% 2,100
20% units 30% 630
30% units 24.5% 772
50,000 43,002

W-1 Quantity schedule Units

Opening WIP -
Input 55,000
Closing WIP (10,500)
Normal loss (balancing) (5,000)
Output 39,500

(b) Cost per unit Dep-A Conv.

---------------- Rs. ------------------
Current period costs [55,000 x 1.8] [27,520 + 15,480] 99,000 43,000

Equivalent units 50,000 43,002

Cost per unit (Rs.) 1.98 1.00

(c) Statement of evaluation Rs.

Cost of completed units 117,710
[39,500 x (1.98 + 1.00)]

Cost of Closing WIP

De-A cost [10,500 x 1.98] 20,790
Conversion:
- 50% units [2,100 x 1.00] 2,100
- 20% units [630 x 1.00] 630
- 24.50% units [772 x 1.00] 772
24,292