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18 Cards in this Set
- Front
- Back
- 3rd side (hint)
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FIFO Equivalent Units
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Beginning WIP inventory is not included for materials because they are used (first in first out)
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Beginning WIP is from prior period
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Prior Department Costs
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Transferred in Costs - equivalent units are 100% complete in terms of prior department costs
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Treated as Direct Materials
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Weighted Average Unit Costs
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WIP Costs + Current Period Costs/ Work in Process EU + Current period EU
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Inventory Equation
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Beginning work in process inventory + Units started =
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Units transferred out + Ending work-in-process inventory
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Debit Direct Materials
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Credit Accounts Payable
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Credit Direct Materials
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Debit Work in Process
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Debit Work in Process
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Credit Raw Materials
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Debit Work in Process
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Credit Wages Payable
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Debit Work in Process
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Credit Manufacturing Overhead
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Credit Work in Process
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Debit Finished Goods
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Credit Finished Goods
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Debit Cost of Goods Sold
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Debit Manufacturing Overhead Actual
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Credit Raw materials
Credit Accounts Payable Credit Cash Credit depreciation (ie factory) |
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Credit Manufacturing Overhead Applied
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Debit Work in Process
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Step 1: Measure the physical flow of Resources
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Beginning Wip + Units Started = Units transferred out + Ending Work in process Inventory
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Step 2: Compute the equivalent units of production
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ie materials, conversions
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Step 3: Indentify the products costs to account for
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ie beginning work in process and current costs
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Step 4: Compute the costs per equivalent unit
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divide costs by equivalent units
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Step 5: Assign Products Cost to Batches of Work
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equivalent units x cost per equivalent unit transferred out (100% complete ) and ending wip inventory ie conversion not complete
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