Question
If 8000 units are introduced in a process and normal
loss is 5% of input, Closing WIP is 1000 units which is 60% complete and 6600 units are transferred to the next process, what is the equivalent production for the period?ÂSolution
Equivalent production of WIP 1000 units = 60% of 1000 units = 600 units Complete units transferred = 6600 units Total equivalent production for the period = 600+6600 = 7200 units Â
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