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Question - A firm operates a process costing in which no losses are incurred. At the beginning of the period the opening work-in-progress was 2,500 units, which were 100 percent complete in respect of materials, and 60 per cent complete in respect of labour and overheads, valued at N$5,200 (Direct materials) and N$6,000 (conversion costs). During the period, 4,000 units were started and completed incurring a of N$35,500 with respect to materials and N$41,300 with respect to conversion costs, respectively.
At the end of the period the closing work-in-progress was 1,500 units, which were 100 per cent complete in respect of materials, and 60 per cent complete in respect of conversion. The firm uses the FIFO method for valuing the output from the process.
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