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I was surprised to see that UCC allows the sellers to amend the contract if the prices are unfavorable to them. I always thought that a contract can be amended (to increase the price) if the seller is giving additional consideration to the buyer. I would be interested to know what others think.
It is my understanding that of the 10,000 in beginning WIP ... 60% was completed last period and 40% will be included in this period's cost = 4,000 Now, 50,000 was started and completed this period which would mean we need to minus the 10,000 that was completed last period= 40,000 Now, in ending WIP we have 2,000 that was 40% completed = 800 4000+40000+800= 44,800 ---> That would be the equivalent units under FIFO It appears the equivalent units in the solution is double counting the amount in the beginning WIP ... Could you clarify for me please. Thanks !
Should not the loan of $1mn be reported as current liability - it is due within 12 months and there is no agreement to refinance it.