Chapter 4 - Full Student Version

1 the weighted average the weighted average method

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Unformatted text preview: covered covered in the appendix to this chapter. 1 The Weighted-Average The Weighted-Average Method – This This method will be covered in the main portion of the chapter. chapter. So, 10,000 units 70% complete are equivalent to 7,000 complete units. LO 2 LO 2 4-17  h 4-18 W W t Z t D The weighted-average method . . . Production Report A quantity schedule showing the flow of units and the computation of equivalent units. • Makes no distinction between work done in prior or current periods. Section 1 • Blends together units and costs from prior and current periods. A computation of cost per equivalent unit. Section 2 • Determines equivalent units of production for a department by adding together the number of units transferred out plus the equivalent units in ending work in process inventory. Cost Reconciliation section shows the reconciliation of all cost flows into and out of the department during the period. Section 3 LO 2 4-19   4-20 W Z  Section 1: Prepare Quantity Schedule with Equivalent Units.  D  W W Units to be accounted for: W ork in process, May 1 Started into production Total units D D  200 5,000 5,200 Equivalent units Materials Conversion D D  Units accounted for as follows: Completed and transferred W ork in process, May 31 Materials 40% complete Conversion 25% complete  D  4,800 400 4,800 160 5,200 LO 3 4,800 4,960 100 4,900 4-21 W Z  W Section 2: Compute the cos...
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This note was uploaded on 04/01/2014 for the course RSM 222 taught by Professor D.cianflone during the Fall '10 term at University of Toronto- Toronto.

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