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chapter 3 busi 101 note

# chapter 3 busi 101 note - In computing equivalent units the...

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Chapter 3 BUSI 101 WTD AVG-- Total Woek Done to Date FIFO—Current Work Done Only 1) Compute Physical Flow 2) Calculate the Equivalent Units 3) Summarize Total Cost 4) Compute Cost Equivalent Unit 5) Accountability 1.2—Units 3.4.5-- Money Weighted Average Method Companies use process cost systems when they produce a large volume of uniform or relatively homogeneous products. Conversion Costs are the sum of labor costs and overhead costs Beg WIP + Star into Production= Total Units(Total Units To be Accounted For) End WIP + Units Transfer Out= Total Units (Total Units Accounted For)
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Unformatted text preview: In computing equivalent units, the beginning work in process is not part of the equivalent-units-of-production formula. FIFO Method Using the FIFO method, equivalent units are the sum of the work performed to: 1. Finish the units of beginning work in process inventory 2. Complete the units started into production during the period (referred to as the units started and completed).---Transfer out-- Beg WIP 3. Start, but only partially complete, the units in the ending work in process inventory....
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