Question
If 28000 units are introduced in a process and normal
loss is 5% of input, Closing WIP is 6000 units which is 40% complete and rest of the good units are transferred to the next process, what is the equivalent production for the period?ÂSolution
Equivalent production of WIP 6000 units = 40% of 6000 units = 2400 units Complete units transferred = 20600 units Total equivalent production for the period = 2400 units + 20600 units = 23000 units
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