Busi 101 Notes 1:31:11

Busi 101 Notes 1:31:11 - conversion costs (1 and 2 are in...

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Busi 101 Notes 1/31/11 Chapter 3 Job-Order Costing (chapter 2): Tailor made/unique Goods Process Costing (chapter 3): Continuous Mass production of like units Equivalent Units - Expression of output during a given period of time in terms of doses/amount of work applied thereto Example, 10,000 shirts 40% complete is equivalent to 4,000 shirts 100% complete Weighted average method- Total work done to date FiFo Method- Current work done ONLY Difference: Beginning inventory (weighted average includes it, FiFo doesn’t) Process Costing: 5 Steps (Weighted Average Method) 1) Computer Physical Flow 2) Calculate Equivalent Units 3) Summarize Total Costs 4) Compute Cost/Equivalent Unit (3/2) 5) Accountability (2*4) Step One for weighted average method: o Beg Inv. +Started To Account for o Completed +Ending Inventory Accounted For o ** To Account for = Accounted For o Assign costs based on percentage completed by materials and
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Unformatted text preview: conversion costs (1 and 2 are in units, 3-5 are in $) Examples done in class: pg. 25 in course pack, problem with answers provided, also example 3.6 in textbook Fifo Method First in First out current work done ONLY. Difference: In step one: o Beg Inv. +Started To Account for o To Complete: Beginning Inventory +Started and Completed +Ending Inventory Accounted For o To Account for still=Accounted For o ***Important: With Fifo method step one, in the To Complete section, percentage of conversion cost is given in percentage COMPLETED, meaning you use the remaining percentage for conversion cost. For example, if it says 30% were completed by conversion costs, you would multiply the to complete by 70% because the 30% leaves 70% to complete by conversion costs...
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Busi 101 Notes 1:31:11 - conversion costs (1 and 2 are in...

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