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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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This note was uploaded on 01/17/2012 for the course BUSI 101 taught by Professor Skender during the Spring '08 term at UNC.
- Spring '08