ORIE 3150 Class Notes Nov 3 2009

ORIE 3150 Class Notes Nov 3 2009 - ORIE 3150 Process...

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ORIE 3150 Process Costing 1. Process Costing, FIFO Equivalent units to finish the beginning WIP Units started and completed + Equivalent units in ending WIP Equivalent units of production (EUOP) EU to finish beginning WIP = (Units in beginning WIP) × (1 – fraction completion) Cost per EU = EUOP Period This Added Cost Cost in beginning WIP + Equivalent units to finish the beginning WIP × Cost per EU + Units started and completed × Cost per EU Cost of Goods Transferred ______________________________________________________________ 2. Process Costing, Weighted Average EUOP = Units Transferred to Next Dept. + EU in Ending WIP Cost per EU = (Cost in the beginning WIP + Cost Added in Current Period)/EUOP Cost of Goods Transferred = Cost per EU × No. of Units Transferred ______________________________________________________________ 3. Units In each case, use total, partially completed units (not EU’s): Units Transferred = Beginning WIP + Units Started – Ending WIP Units Started and Completed = Units Started – Ending WIP Units Transferred = Beginning WIP + Units Started and Completed
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This note was uploaded on 10/07/2010 for the course ORIE 3150 taught by Professor Callister during the Fall '08 term at Cornell.

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ORIE 3150 Class Notes Nov 3 2009 - ORIE 3150 Process...

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