ACIS 2116 Chapter 5 Appendix with Blanks

ACIS 2116 Chapter 5 Appendix with Blanks - Additional...

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ACIS 2116 Chapter Five - Appendix Additional Topics in Process Costing
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Equivalent Units of Production To calculate costs we need to calculate equivalent units because a department usually has some partially completed units in its beginning and ending inventory.
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Equivalent Units – The Basic Idea Two half completed products are equivalent to one completed product. So, 10,000 units 70% complete are equivalent to 7,000 complete units. + = 1
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For the current period, Jones started 15,000 units and completed 10,000 units, leaving 5,000 units in process 30 percent complete. How many equivalent units of production did Jones have for the period? a. 10,000 b. 11,500 c. 13,500 d. 15,000 Test Your Knowledge
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Calculating Equivalent Units Equivalent units can be calculated two ways: The First-In, First-Out Method The Weighted-Average Method
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Process Costing and Direct Labor Direct labor costs may be small in comparison to other products costs in process cost systems.
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