The document discusses two methods for process costing: average method and FIFO method. The average method calculates equivalent units produced as units completed plus equivalent units. The FIFO method calculates equivalent units produced as equivalent units at beginning of period plus units completed during period plus equivalent units at end of period. Equivalent units at end of period is calculated as beginning work-in-process inventory multiplied by the percentage not yet completed. The document also provides an example of a cost reconciliation report for a processing department, showing beginning work-in-process inventory, costs added to production, costs of units transferred out, and ending work-in-process inventory.
The document discusses two methods for process costing: average method and FIFO method. The average method calculates equivalent units produced as units completed plus equivalent units. The FIFO method calculates equivalent units produced as equivalent units at beginning of period plus units completed during period plus equivalent units at end of period. Equivalent units at end of period is calculated as beginning work-in-process inventory multiplied by the percentage not yet completed. The document also provides an example of a cost reconciliation report for a processing department, showing beginning work-in-process inventory, costs added to production, costs of units transferred out, and ending work-in-process inventory.
The document discusses two methods for process costing: average method and FIFO method. The average method calculates equivalent units produced as units completed plus equivalent units. The FIFO method calculates equivalent units produced as equivalent units at beginning of period plus units completed during period plus equivalent units at end of period. Equivalent units at end of period is calculated as beginning work-in-process inventory multiplied by the percentage not yet completed. The document also provides an example of a cost reconciliation report for a processing department, showing beginning work-in-process inventory, costs added to production, costs of units transferred out, and ending work-in-process inventory.
- 2 cách tính + Average Method: Khối lượng sản xuất tương đương = Sản phẩm hoàn thành + Sảm phẩm tương đương + FIFO Method: KL sx tương đương = SP tương đương đầu kỳ + SP hoàn thành trong kỳ + SP tương đương cuối kỳ SP tương đương cuối kỳ = Sp dở dang đầu kỳ * ( 100 – mức độ hoàn thành ) %
In September, one of the processing departments at Company A had beginning work in
process inventory of $12,000. During the month, $136,000 of costs were added to production and the cost of units transferred out from the department was $121,000. Required: Construct a cost reconciliation report for the department for the month of September. Solution: Cost to be accounted for: Cost of beginning work in process inventory $ 12,000 Cost added to production during the period $136,000 Total cost to be accounted for $148,000 Cost accounted for: Cost of ending work in process inventory $ 27,000 Cost of units transferred out $121,000 Total cost accounted for $148,000