ACIS 2116 Chapter 5 Appendix Spring 2009

ACIS 2116 Chapter 5 Appendix Spring 2009 - 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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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 10,000 units + (5,000 units × 0.30) = 11,500 equivalent units
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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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This note was uploaded on 09/25/2009 for the course ACIS 2116 taught by Professor Cmeasterwood during the Spring '08 term at Virginia Tech.

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ACIS 2116 Chapter 5 Appendix Spring 2009 - Additional...

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