A firm introduced 3,000 units of material in the manufacturing process. During the period 2,500 units were completed and transferred to next…

CA Intermediate · Cost and Management Accounting · MTP · May 2025
A firm introduced 3,000 units of material in the manufacturing process. During the period 2,500 units were completed and transferred to next process. However, the degree of completion on remaining 500 units was 100%, 60%, and 30% for materials, labour and overheads respectively. Which one of the following is the equivalent complete units with regard to labour?
(A) 2,500
(B) 2,800
(C) 2,650

Suggested Answer and Working Notes:

Correct Answer: Option (B)

2,800

Topics: Overheads - Absorption Costing Method

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