In this question, while calculating cost per equivalent unit, they have not considered opening wip… Why??
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They have considered opening WIP for calculating the equivalent units for conversion cost (Image attached)
No it’s cost incurred during feb and not opening wip
It is not considered because we have to solve the sum using FIFO method.
In the FIFO method, we charge the cost of opening WIP separately and do not consider it in calculating the cost per equivalent unit.
Okay… thankyou!