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"Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete.
If 11,750completed units were transferred out, what was the closing inventory in Process B?"

Answer & Solution
Correct Answer: Option C
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3 Comments
Ejaz Khattak
Ejaz Khattak 2 years ago
Total raw material is 13500, additional metrial is needed to convert raw material to finished goods which cost 1.2 per unit. 11750 units of raw material are converted to finished goods. 13500-11750=1750 units are still in process. We need to calculate cost of units still in process. So 4.5+1.2+2.5 will become the cost perunit of work in process.labour cost of finished goods will not include.
Anjali Chaudhary
Anjali Chaudhary 6 years ago
13500-11750=1750
1750*(4.50+1.25+2.50)=14437.50
Azeem Chaudhry
Azeem Chaudhry 6 years ago
anyone solve this question? how option c is correct