ACIS 2116 Chapter 5 Appendix Spring 2009

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

This preview shows pages 1–7. Sign up to view the full content.

ACIS 2116 Chapter Five - Appendix Additional Topics in Process Costing

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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.
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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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
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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Calculating Equivalent Units Equivalent units can be calculated two ways: The First-In, First-Out Method The Weighted-Average Method
This is the end of the preview. Sign up to access the rest of the document.

## 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.

### Page1 / 18

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

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online