Cost accounting, accounting, Basic Statistics

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1. ABC produces a single product. Material A is added at the start of production and Material B at the end. Conversion is uniform throughout. Inspection before Material B is added. Normal spoilage is 5%. Beginning inventory (80%) 2000 units, Units started 18,000, Good units completed and sold 16,000, Ending WIP (40%) 1,000 units. Use FIFO process costing to find equivalent units for Material A, Material B and Conversion Cost.

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