Ch3 Process Costing

Ch3 Process Costing - Ch3 Process Costing Monday 9:43 AM Equivalent Units the expression of output during a given period of time in terms of

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Ch3 Process Costing Monday, January 31, 2011 9:43 AM Equivalent Units: the expression of output during a given period of time in terms of doses/amounts of work applied thereto 10,000 shirts being mass produced…………. 40% complete = 4,000 shirts 100% complete Weighted Average Method - Total Work Done to Date Fifo Method- Current Work Done Only Difference? Beginning Inventory PROCESS COSTING FIVE STEPS: 1. Compute Physical Flow 2. Calculate Equivalent Units 1. Summarize Total Costs 1. Compute Cost Per Equivalent Unit (#3/#2) 1. Accountability (#2 x #4) Course Pack p 25 Alpine Watch Company Weighted Average Method Units Beg Inv 1000 (100% M, 50% Conversion Costs [labor/OHD]) +Started 10,000 To Account For 11,000 Completed: 9,500 +End Inv 1,500 (100% M, 33.3% CC) Accounted For 11,000 Beg. Inv +Current Costs Cost Per Equivalent Units

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Accountability: Completed 9500 x \$21.00 = \$199500 + Ending Inventory M: 1500 x \$6 = \$9000 CC: 500 x \$15 = \$7,500 = \$216,000 FIFO(First in, First Out) Method
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This note was uploaded on 02/27/2012 for the course BUSI 101 taught by Professor Skender during the Spring '08 term at UNC.

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Ch3 Process Costing - Ch3 Process Costing Monday 9:43 AM Equivalent Units the expression of output during a given period of time in terms of

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