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Unformatted text preview: a. Unit Components available in beginning inventory. b. Cost components FIFO represents only costs incurred in the current period (the 100 u. beg. inv. were deducted from 600 u.). The weighted-average approach includes both current period units plus prior period units." Cost per equivalent unit: Equivalent units = 680 Equivalent units = 655 Source: Adapted from Becker CPA Review, B-5, p. 24. 2007 Equivalent unit calculation under FIFO consistes of three elements representing current period production, whereas the calculation under the weighted-average method consists of only two elements that embrace units completed and Weighted-average = Beg. inv. cost + Current cost FIFO = Current cost only...
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- Spring '11
- Accounting, The Current, equivalent units