Chapter 4 - Full Student Version

H equivalent units can be calculated two ways ways

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Unformatted text preview: ed products are equivalent to one complete product.  h Equivalent units can be calculated two ways: ways: The The First-In, First-Out Method – FIFO is Out FIFO + = 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...
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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.

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