Using weighted -average approach,
I Need To Calculate Equivalent Units In The Weighted Average Method. How Is That Possible?
I Need To Calculate Equivalent Units In The Weighted Average Method. How Is That Possible?
Well dear buddy!
Equivalent units of production can be calculated as follows:
Equivalent units of production
= units transferred to the department of the production + units available in Work in Process
Production
Have fun!
Well dear buddy!
Equivalent units of production can be calculated as follows:
Equivalent units of production
= units transferred to the department of the production + units available in Work in Process
Production
Have fun!
Well dear buddy!
Weighted Average
assumes that the opening WIP is 0% complete
• unit cost = (costs in beginning inventory + costs
added) ÷ equivalent units
• equivalent units =units transferred out+ EU in ending inventory
• cost of units transferred out =
– units transferred out x total unit cost
• cost of ending inventory =
– equivalent units in ending inventory, by category, x unit cost for that category
FIFO
• unit cost = costs added ÷ equivalent units
• equivalent units =
work done to complete opening inventory
+ Units started and completed
+ EU in ending inventory
• cost of units transferred out =
– costs in opening WIP +
– cost to complete opening WIP: Equivalent
units to complete, by category, x unit cost for
that category +
– units started and completed X total unit cost
• cost of ending inventory =
– equivalent units in ending inventory, by
category, x unit cost for that category
assumes that the opening WIP is 0% complete
• unit cost = (costs in beginning inventory + costs
added) ÷ equivalent units
• equivalent units =units transferred out+ EU in ending inventory
• cost of units transferred out =
– units transferred out x total unit cost
• cost of ending inventory =
– equivalent units in ending inventory, by category, x unit cost for that category
FIFO
• unit cost = costs added ÷ equivalent units
• equivalent units =
work done to complete opening inventory
+ Units started and completed
+ EU in ending inventory
• cost of units transferred out =
– costs in opening WIP +
– cost to complete opening WIP: Equivalent
units to complete, by category, x unit cost for
that category +
– units started and completed X total unit cost
• cost of ending inventory =
– equivalent units in ending inventory, by
category, x unit cost for that category