# ECONOMICS

## COST ACCOUNTING

### PROCESS COSTING

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Kayu Cengal Sdn Bhd has 20, 000 units in beginning work in process including the cost of material is RM15, 000 and conversion costs is RM8, 000.30, 000 units transferred out to finished goods, and 6, 000 units in ending work in process 30% complete as to conversion costs.The beginning and ending inventory is fully complete as to materials costs. Cost incurred for the month is RM28, 200 for material and RM 17, 440 for conversion costs.The cost per equivalent units for materials and conversion costs are, respectively:
 A RM1.00; RM0.90 B RM1.20; RM0.80 C RM1.20; RM0.90 D RM1.00; RM0.80
Explanation:

Detailed explanation-1: -The weighted average costing method combines the partially completed units in beginning work-in-process inventory with units produced in the current period to determine a weighted average equivalent units of production.

Detailed explanation-2: -Calculate cost per unit: Divide the total cost by the number of units. This calculation includes both completed units and equivalent units. So, if a business completed 4, 000 products and another 1, 000 units got halfway through production, the applicable costs would be divided by 4, 000 + (1, 000/2) = 4, 500 units.

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