1. Define cost accounting and its objectives.

2. What is the difference between cost accounting and financial accounting?

3. Explain the term ‘cost object’ with an example.

4. Define ‘cost center’ and provide an example.

5. What is meant by ‘cost unit’? Give two examples.

6. List and explain the three main elements of cost.

7. Differentiate between direct costs and indirect costs with examples.

8. Define ‘prime cost’ and ‘factory cost’.

9. What are overheads? Give three examples.

10. Explain ‘selling and distribution overheads’ and provide examples.

11. Classify costs based on behavior.

12. What is fixed cost? Provide examples.

13. Explain variable cost with suitable examples.

14. Define semi-variable costs and give two examples.

15. Differentiate between product costs and period costs.

16. What is the ‘cost behavior analysis’?

17. Explain the concept of ‘marginal cost’.

18. What is the ‘break-even point’ and how is it calculated?

19. Describe the ‘contribution margin’.

20. What is the ‘operating leverage’?

21. Define ‘inventory’ and its types.

22. Explain the ‘Economic Order Quantity (EOQ)’ model.

23. What is the ‘Just-In-Time (JIT)’ inventory system?

24. Describe the ‘ABC analysis’ in inventory management.

25. What is ‘safety stock’ and why is it important?

26. Define ‘process costing’.

27. Explain the difference between process costing and job costing.

28. Describe ‘equivalent units of production’.

29. What are ‘joint products’ and ‘by-products’?

30. Explain ‘normal loss’ and ‘abnormal loss’ in process costing.

31. What are the different methods of labour remuneration?

32. Explain the ‘time rate system’.

33. Describe the ‘piece rate system’.

34. What is the ‘Halsey Premium Plan’?

35. Explain the ‘Rowan Premium Plan’.

36. Define ‘service costing’ and its purpose.

37. What is the cost unit in service costing?

38. Explain ‘operation costing’ in the context of service industries.

39. Describe the costing method used in transport services.

40. What are the components of cost in service costing?

41. Calculate the prime cost given the following data: Direct materials $5,000, Direct labor
$3,000.

42. Find the factory cost: Prime cost $8,000, Factory overheads $2,000.

43. Determine the total cost: Factory cost $10,000, Administrative overheads $1,000,
Selling and distribution overheads $500.

44. Compute the break-even point in units if Fixed Costs = $5,000, Selling Price per Unit =
$50, Variable Cost per Unit = $30.

45. Calculate the EOQ given Annual demand = 10,000 units, Ordering cost per order = $20,
Carrying cost per unit per year = $2.

46. Determine the cost per equivalent unit: Total costs = $50,000, Equivalent units =
10,000.

47. Find the total wages for a worker under the time rate system: Hours worked = 160,
Hourly rate = $15.
48. Calculate the wages under the piece rate system: Units produced = 200, Rate per unit =
$5.

49. Determine the premium under the Halsey Plan: Standard time = 10 hours, Actual time =
8 hours, Hourly rate = $12, Premium rate = 50%.

50. Compute the total cost for a transport service: Cost per mile = $2, Total miles = 500.

51. What is ‘activity-based costing’?

52. Explain the term ‘cost allocation’.

53. Define ‘opportunity cost’ and give an example.

54. What is ‘sunk cost’?

55. Describe ‘differential cost’.

56. Calculate the contribution margin per unit: Selling price per unit = $20, Variable cost
per unit = $8.

57. Determine the profit: Total revenue = $50,000, Total costs = $35,000.

58. Compute the overhead absorption rate: Total overheads = $10,000, Total machine
hours = 2,000.

59. Calculate the cost variance: Actual cost = $12,000, Standard cost = $10,000.

60. Find the material cost variance: Standard price = $5 per unit, Actual price = $6 per unit,
Actual quantity = 1,000 units.

61. A company uses job costing. Explain how it would allocate costs to a specific job.

62. Describe how a company would implement a process costing system for a beverage
production line.

63. A service company uses operation costing. Illustrate how it would determine the cost
per service.

64. Explain the steps involved in conducting an inventory audit.

65. Describe the process of reconciling budgeted costs with actual costs in a
manufacturing firm.

66. A manufacturer produces two joint products. Explain how the joint costs might be
allocated.

67. Discuss the impact of labour efficiency on overall production costs.

68. Analyze how a sudden increase in raw material prices would affect cost accounting
records.

69. Explain the role of cost accounting in pricing decisions.

70. Illustrate the application of cost accounting in a non-manufacturing environment, such

as a hospital.

71. Determine the fixed cost per unit: Total fixed costs = $20,000, Units produced = 4,000.

72. Calculate the variable cost per unit: Total variable costs = $30,000, Units produced =
5,000.

73. Find the total mixed costs: Fixed cost = $10,000, Variable cost per unit = $3, Units
produced = 2,000.

74. Compute the net profit: Total sales = $100,000, Total costs = $75,000, Tax rate = 20%.

75. Calculate the absorption costing net income: Sales = $200,000, Variable costs =
$120,000, Fixed manufacturing costs = $40,000, Fixed selling and administrative costs =
$30,000.

76. What is the ‘cost of goods sold’ and how is it calculated?

77. Define ‘margin of safety’ and its importance.

78. Explain the concept of ‘cost leadership’.

79. What is ‘life cycle costing’?

80. Discuss the advantages of a cost accounting system.

81. Determine the cost of ending inventory using FIFO method: Beginning inventory = 100
units @ $10, Purchases = 200 units @ $12, Sales = 150 units.

82. Compute the cost of ending inventory using LIFO method: Beginning inventory = 100
units @ $10, Purchases = 200 units @ $12, Sales = 150 units.

83. Calculate the average cost per unit using the weighted average method: Beginning
inventory = 100 units @ $10, Purchases = 200 units @ $12.

84. Determine the total labor cost for an employee under a bonus scheme: Base salary =
$2,000, Bonus = $500.

85. Find the total cost of goods manufactured: Direct materials = $5,000, Direct labor =
$3,000, Manufacturing overhead = $2,000, Work in progress (beginning) = $1,000, Work in
progress (ending) = $500.
86. A company decides to implement JIT. Discuss the potential benefits and challenges.

87. How would you apply ABC analysis to categorize inventory items in a retail store?

88. Explain the process of standard costing and its role in cost control.

89. A company faces high labor turnover. Analyze its impact on cost accounting.

90. Describe the steps involved in preparing a cost sheet.

91. How does cost accounting contribute to strategic planning?

92. Explain the role of cost accounting in budgeting.

93. Discuss how variance analysis can be used to improve operational efficiency.

94. What are the ethical considerations in cost accounting?

95. Analyze the impact of technology on cost accounting practices.

96. Compute the profit using marginal costing: Sales = $100,000, Variable costs = $60,000,
Fixed costs = $30,000.

97. Determine the cost per unit using activity-based costing: Total overheads = $50,000,
Total activity cost drivers = 10,000 hours.

98. Calculate the sales volume needed to achieve a target profit: Fixed costs = $40,000,
Variable cost per unit = $10, Selling price per unit = $20, Target profit = $20,000.

99. Find the equivalent units of production: Units completed = 5,000, Work in progress
(50% complete) = 1,000.

100. Determine the cost of ending work in progress: Total costs = $100,000, Equivalent
units = 10,000.

Here are the answers

1. Cost accounting; A branch of accounting that deals with recording, classifying,

analyzing, and allocating costs associated with processes, products, or projects to control
and reduce costs and enhance efficiency.

2. Difference between cost accounting and financial accounting: Cost accounting focuses
on internal cost control and reduction, while financial accounting focuses on external
financial reporting.

3. Cost object: An item for which costs are measured and assigned, such as a product,
service, project, or department. Example: A specific product line.
4. Cost center: A department or unit within an organization where costs can be allocated.
Example: Human resources department.

5. Cost unit: A unit of product or service in relation to which costs are ascertained.
Examples: A ton of steel, a liter of fuel.

6. Three main elements of cost: Direct materials, direct labor, and overheads.

7. Direct costs vs. Indirect costs: Direct costs can be directly traced to a cost object (e.g.,
direct materials, direct labor). Indirect costs cannot be directly traced and are allocated
(e.g., overheads).

8. Prime cost: Sum of direct materials and direct labor costs.

9.Factory cost: Prime cost plus factory overheads.

10. Overheads: Indirect costs incurred in the production process. Examples: Depreciation,
rent, utilities.

11. Costs based on behavior: Fixed costs, variable costs, semi-variable costs.

12. Fixed cost: Costs that do not change with the level of production or sales. Examples:
Rent, salaries.

13. Variable cost: Costs that vary directly with the level of production. Examples: Raw
materials, direct labor.

14. Semi-variable costs: Costs that have both fixed and variable components. Examples:
Utility bills, maintenance costs.

15. Product costs vs. Period costs: Product costs are associated with the production
process (e.g., direct materials), while period costs are related to time periods (e.g.,
administrative expenses).

16. Cost behavior analysis: Study of how costs change in response to changes in
production or sales volume.

17. Marginal cost: The cost of producing one additional unit of output.

18. Break-even point: The level of sales at which total revenues equal total costs, resulting
in no profit or loss. Calculated as Fixed Costs / (Selling Price per Unit – Variable Cost per
Unit).

19. Contribution margin: Selling price per unit minus variable cost per unit.
20. Operating leverage; Degree to which a company uses fixed costs to generate profits.
Higher leverage indicates higher risk and potential for profit.

21. Inventory: Goods and materials held by a business for resale or production. Types: Raw
materials, work-in-progress, finished goods.

22. Economic Order Quantity (EOQ): The optimal order quantity that minimizes total
inventory costs. Formula: \(\sqrt{(2DS/H)}\), where \(D\) = demand, \(S\) = ordering cost,
\(H\) = holding cost.

23. Just-In-Time (JIT): An inventory strategy that aims to reduce holding costs by receiving
goods only as they are needed.

24. ABC analysis*: A method of categorizing inventory items based on their importance. ‘A’
items are the most valuable, ‘B’ items are less valuable, and ‘C’ items are the least
valuable.

25. Safety stock: Extra inventory held to guard against stockouts due to demand variability
and lead times.

26. Process costing: A costing method used where production is continuous, and costs are
averaged over units produced.

27. Difference between process costing and job costing: Process costing is used for
continuous production of similar products, while job costing is used for custom, individual
orders.

28. Equivalent units of production: The number of completed units that could have been
produced given the total amount of effort expended.

29. Joiint products and by-products: Joint products are two or more products produced
from a common input, while by-products are secondary products produced incidentally in
the production of a primary product.

30. Normal loss vs. Abnormal loss: Normal loss is the expected loss in production, while
abnormal loss is unexpected and above the normal level.

31. Methods of labour remuneration: Time rate system, piece rate system, bonus plans
(e.g., Halsey, Rowan).

32. Time rate system: Workers are paid based on the number of hours worked.

33. Piece rate system: Workers are paid based on the number of units produced.
34. Halsey Premium Plan: A bonus plan where workers receive a percentage of the time
saved on a job.

35. Rowan Premium Plan: A bonus plan where the bonus is calculated as a proportion of
the time saved to the standard time.

36. Service costing: A costing method used to ascertain the cost of providing a service.

37. Cost unit in service costing: A measure of the service provided. Examples: Per hour of
service, per mile traveled.

38. Operation costing: A hybrid costing system combining job and process costing, used in
service industries.

39. Costing method in transport services: Typically uses operating costing where costs are
calculated per kilometer or per mile.

40. Components of cost in service costing: Direct materials, direct labor, and overheads.

41. Prime cost: $5,000 (Direct materials) + $3,000 (Direct labor) = $8,000.

42. Factory cost: $8,000 (Prime cost) + $2,000 (Factory overheads) = $10,000.

43. Total cost: $10,000 (Factory cost) + $1,000 (Administrative overheads) + $500 (Selling
and distribution overheads) = $11,500.

44. Break-even point in units: $5,000 (Fixed Costs) / ($50 - $30) = 250 units.

45. EOQ: square root {(2 ×10,000 ×20 / 2)} = 316.23 units.

46. Cost per equivalent unit: $50,000 / 10,000 = $5.

47. Total wages (time rate system): 160 hours ×$15 = $2,400.

48. Total wages (piece rate system):200 units × $5 = $1,000.

49. Premium under Halsey Plan: (10 – 8) hours × $12×50% = $12.

50. Total cost for transport service: $2 × 500 miles = $1,000.

51. Activity-based costing: A costing method that assigns overheads to specific activities,
which are then assigned to products based on their usage of those activities.

52. Cost allocation: The process of assigning indirect costs to different cost objects.

53. Opportunity cost: The value of the next best alternative forgone. Example: The income
sacrificed by choosing to study full-time instead of working.
54. **Sunk cost**: A past cost that cannot be recovered. Example: Money spent on a non-
refundable event.

55. Differential cost: The difference in total cost between two alternatives.

56. Contribution margin per unit: $20 (Selling price) - $8 (Variable cost) = $12.

57. Profit: $50,000 (Total revenue) - $35,000 (Total costs) = $15,000.

58. Overhead absorption rate: $10,000 (Total overheads) / 2,000 (Total machine hours) = $5
per machine hour.

59. Cost variance: $12,000 (Actual cost) - $10,000 (Standard cost) = $2,000.

60. Material cost variance: ($6 - $5) ×1,000 = $1,000.

61. Job costing allocation: Costs are tracked and assigned to specific jobs based on direct
materials, direct labor, and overheads.

62. Process costing implementation: Costs are collected and averaged over all units
produced, with costs assigned to different production stages.

63. Operation costing in service industry: Costs are accumulated for each operation and
then averaged over the number of services provided.

664.Inventory audit steps: Physical count, reconciliation with records, adjustment entries,
and valuation.

65. Reconciling budgeted vs. actual costs: Identify variances, analyze reasons, adjust
records, and take corrective actions.

66. Joint cost allocation: Allocated based on relative sales value, physical measures, or net
realizable value.

67. Impact of labor efficiency: Higher efficiency reduces direct labor costs and increases
profitability.

68. Raw material price increase impact:Increases cost of goods sold, potentially reduces
profit margins, and may require price adjustments.

69. Role of cost accounting in pricing: Provides detailed cost information to set competitive
and profitable prices.

### Answers
70. **Illustrate the application of cost accounting in a non-manufacturing environment,
such as a hospital.**

In a hospital, cost accounting can be applied as follows:

1. **Direct Costs:**

- Medical Supplies: Tracking the costs of items like bandages, syringes, and medications
used for patient care.

- Labor: Accounting for the salaries and wages of doctors, nurses, and other medical staff
directly involved in patient care.

2. **Indirect Costs:**

- Overhead Costs: Allocating costs such as utilities, maintenance, and administrative

salaries to different departments.

- Depreciation: Calculating depreciation for medical equipment and hospital facilities.

3. **Cost Centers:**

- Departments: Each department (e.g., radiology, emergency room, intensive care unit)
can be treated as a cost center.

- Services: Different medical services provided (e.g., surgeries, lab tests) can also be cost
centers.

4. **Cost Allocation:**

- Service Costing: Allocating costs to specific services provided, such as surgeries or

outpatient treatments.

- Patient Costing: Determining the cost per patient by aggregating the costs of services
and resources utilized.
5. **Budgeting and Cost Control:**

- Preparing budgets for each department and comparing actual expenses against the
budgeted amounts to identify variances and take corrective actions.

6. **Pricing Decisions:**

- Using cost information to set prices for medical services and treatments to ensure they
cover costs and provide a margin for the hospital.

### Calculation-Based Questions

71. **Determine the fixed cost per unit:**

\[

\frac{\$20,000}{4,000} = \$5 \text{ per unit}

\]

72. **Calculate the variable cost per unit:**

\[

\frac{\$30,000}{5,000} = \$6 \text{ per unit}

\]

73. **Find the total mixed costs:**

\[

2,000 \times 3 = \$6,000

\]

\[

\$10,000 + \$6,000 = \$16,000

\]
74. **Compute the net profit:**

\[

\$100,000 - \$75,000 = \$25,000

\]

\[

0.20 \times \$25,000 = \$5,000

\]

\[

\$25,000 - \$5,000 = \$20,000

\]

75. Calculate the absorption costing net income:

Sales= $200,000

Variable costs= $120,000

Fixed manufacturing costs= $40,000

Fixed selling and administrative costs= $30,000

Gross profit = Sales - {Variable costs} - Fixed manufacturing costs} = $200,000 - $120,000
- $40,000 = $40,000

Net income} = {Gross profit} - Fixed selling and administrative costs} = $40,000 - $30,000 =
$10,000

76. What is the ‘cost of goods sold’ and how is it calculated?

Cost of Goods Sold (COGS) is the direct costs attributable to the production of the goods
sold by a company. It includes the cost of materials and labor directly used to create the
good.

COGS = Beginning Inventory+ Purchases} - Ending Inventory

77. Define ‘margin of safety’ and its importance.

 The margin of safety is the difference between actual or expected sales and the break-
even sales. It measures the risk of a business experiencing losses.

Margin of Safety} = {Actual Sales} - Break-even Sales

Importance: It indicates how much sales can drop before the business incurs losses,
thus providing a cushion against risks.

78. Explain the concept of ‘cost leadership’.

Cost leadership is a strategy used by businesses to achieve a competitive advantage by

producing goods or services at the lowest possible cost. This allows the company to offer
lower prices than its competitors or to achieve higher profit margins.

79. What is ‘life cycle costing’? Life cycle costing (LCC) is the process of estimating how
much money you will spend on an asset over the course of its useful life. This includes the
initial cost, operating costs, maintenance, and disposal costs.

80. Discuss the advantages of a cost accounting system.

- Provides detailed cost information for management decision-making.

- Helps in budgeting and controlling costs.

- Assists in setting prices for products or services.

- Facilitates performance measurement and evaluation.

- Enhances inventory valuation and control.

81. Determine the cost of ending inventory using FIFO method:

Beginning inventory} = 100 units}@ $10 = $1,000

Purchases} = 200 @ $12 = $2,400

Sales= 150 units

Under FIFO, the cost of ending inventory is:

Ending Inventory = Remaining inventory from purchases} = 50 units@ $12 = $600 + 100
units@ $12 = $1,200
 Total Ending Inventory = $600 + $1,200 = $1,800

82. **Compute the cost of ending inventory using LIFO method:**

\text{Beginning inventory} = 100 \text{ units} @ \$10 = \$1,000

{Purchases} = 200 \text{ units} @ \$12 = \$2,400

\text{Sales} = 150 \text{ units}

Under LIFO, the cost of ending inventory is

\text{Ending Inventory} = \text{Remaining inventory from beginning} = 100 \text{ units} @

\$10 = \$1,000 + 50 \text{ units} @ \$12 = \$600

{Total Ending Inventory} = \$1,000 + \$600 = \$1,600

83. **Calculate the average cost per unit using the weighted average method:**

\text{Beginning inventory} = 100 \text{ units} @ \$10 = \$1,000

\text{Purchases} = 200 \text{ units} @ \$12 = \$2,400

t{Total cost} = \$1,000 + \$2,400 = \$3,400

\text{Total units} = 100 + 200 = 300

{Average cost per unit} = \frac{\$3,400}{300} = \$11.33

84. **Determine the total labor cost for an employee under a bonus scheme:**

Base salary=$2,000

Bonus = $500

Total labor cost= $2,000 + $500 = $2,500

85. Find the total cost of goods manufactured:

Direct materials} = $5,000

Direct labor= $3,000

Manufacturing overhead} = $2,000

{Work in progress (beginning)} = \$1,000

{Work in progress (ending)} = \$50

Total cost of goods manufactured} = \$5,000 + \$3,000 + \$2,000 + \$1,000 - \$500 =
\$10,500

86. **A company decides to implement JIT. Discuss the potential benefits and
challenges.**

**Benefits:**

- Reduces inventory holding costs.

- Decreases waste and improves efficiency.

- Enhances product quality through continuous improvement.

- Increases flexibility and responsiveness to market changes.

**Challenges:**

- Requires reliable suppliers and supply chain management.

- Vulnerable to disruptions in supply.

- Can be challenging to implement and maintain.

- Requires strong coordination and communication.

87. **How would you apply ABC analysis to categorize inventory items in a retail store?**

- Classify inventory into three categories: A, B, and C based on their importance and
value.

- **A-items**: High-value items with low sales frequency. They require tight control and
accurate records.

- **B-items**: Moderate value and moderate sales frequency. They require less strict
control.

- **C-items**: Low-value items with high sales frequency. They require simple control.
88. **Explain the process of standard costing and its role in cost control.**

- Standard costing involves setting standard costs for products and services, then
comparing actual costs to these standards to identify variances.

- Role in cost control:

- Identifies areas of inefficiency.

- Provides benchmarks for performance evaluation.

- Helps in budgeting and planning.

- Facilitates variance analysis to investigate discrepancies.

89. **A company faces high labor turnover. Analyze its impact on cost accounting.**

- Increased recruitment and training costs.

- Potential loss of productivity and efficiency.

- Higher costs due to overtime or temporary staffing.

- Difficulty in maintaining consistent quality and meeting production schedules.

90. **Describe the steps involved in preparing a cost sheet.**

1. **Collect Data**: Gather information on direct materials, direct labor, and overheads.

2. **Categorize Costs**: Classify costs into direct and indirect costs.

3. **Calculate Prime Cost**: Sum of direct materials and direct labor.

4. **Calculate Factory Cost**: Prime cost plus factory overheads.

5. **Calculate Total Cost**: Factory cost plus administrative and selling expenses.

6. **Determine Unit Cost**: Divide total cost by the number of units produced.

91. **How does cost accounting contribute to strategic planning?**

- Provides detailed cost information for decision-making.

- Helps in setting prices and determining profitability.

 - Aids in identifying cost-saving opportunities.

- Facilitates budgeting and financial forecasting.

- Supports performance evaluation and improvement.

92. **Explain the role of cost accounting in budgeting.**

- Provides historical cost data for accurate budget preparation.

- Helps in setting realistic financial targets.

- Monitors actual performance against the budget.

- Identifies variances and enables corrective actions.

- Supports resource allocation and cost control.

93. **Discuss how variance analysis can be used to improve operational efficiency.**

- Identifies areas of cost overrun or underperformance.

- Highlights inefficiencies and areas for improvement.

- Provides insights into the reasons for variances.

- Helps in taking corrective actions to align actual performance with standards.

- Encourages accountability and performance improvement.

94. **What are the ethical considerations in cost accounting?**

- Accurate and truthful reporting of costs.

- Avoiding manipulation of cost data for personal gain.

- Maintaining confidentiality of cost information.

### Answers

94. **What are the ethical considerations in cost accounting?**

Ethical considerations in cost accounting include:

1. **Accuracy and Honesty:** Ensuring that all financial data is reported accurately and
truthfully without manipulation.

2. **Confidentiality:** Protecting sensitive financial information from unauthorized access

or disclosure.

3. **Transparency:** Providing clear and understandable financial reports to stakeholders.

4. **Integrity:** Maintaining integrity by avoiding conflicts of interest and ensuring that

personal interests do not influence professional judgment.

5. **Compliance:** Adhering to relevant laws, regulations, and accounting standards.

6. **Responsibility:** Taking responsibility for the financial information provided and the
decisions made based on that information.

95. **Analyze the impact of technology on cost accounting practices.**

Technology has significantly impacted cost accounting practices in several ways:

1. **Automation:** Streamlines data entry and reduces errors through automated

accounting software.

2. **Real-Time Reporting:** Enables real-time tracking of financial transactions and instant

access to financial data.

3. **Data Analytics:** Facilitates advanced data analysis and forecasting, improving

decision-making.

4. **Cloud Computing:** Provides secure, scalable storage and access to accounting data
from anywhere.

5. **Integration:** Allows integration of cost accounting systems with other business

systems like ERP (Enterprise Resource Planning), enhancing efficiency.

6. **Cost Management:** Improves cost tracking and management through detailed and
precise data analysis.
96. **Compute the profit using marginal costing: Sales = 100,000, Variable costs = 60,000,
Fixed costs = 30,000**

Contribution Margin = Sales – Variable Costs = 100,000 – 60,000 = 40,000

Profit = Contribution Margin – Fixed Costs = 40,000 – 30,000 = 10,000

97. **Determine the cost per unit using activity-based costing: Total overheads = 50,000,
Total activity cost drivers = 10,000 hours**

Cost per Unit = Total Overheads / Total Activity Cost Drivers = 50,000 / 10,000 hours = 5 per
hour

98. **Calculate the sales volume needed to achieve a target profit: Fixed costs = 40,000,
Variable cost per unit = 10, Selling price per unit = 20, Target profit = 20,000**

Contribution Margin per Unit = Selling Price per Unit – Variable Cost per Unit = 20 – 10 = 10

Required Sales Volume = (Fixed Costs + Target Profit) / Contribution Margin per Unit =
(40,000 + 20,000) / 10 = 6,000 units

99. **Find the equivalent units of production: Units completed = 5,000, Work in progress
(50% complete) = 1,000**

Equivalent Units of Production = Units Completed + (Work in Progress × Percentage of

Completion) = 5,000 + (1,000 × 0.50) = 5,000 + 500 = 5,500 units
100. **Determine the cost of ending work in progress: Total costs = 100,000, Equivalent
units = 10,000**

Cost per Equivalent Unit = Total Costs / Equivalent Units = 100,000 / 10,000 = 10 per unit

Cost of Ending Work in Progress = Equivalent Units of Ending Work in Progress × Cost per
Equivalent Unit = 1,000 × 10 = 10,000

As we all know there has not been light and my phone is dead so I had to use ai to complete
so you can get it before test.

Pardon VIBRANT GUYS .

I LOVE YOU AND GOOD LUCK