ACC 121: Chapter 16

Equivalent Units of Production (EUP) (weighted average method)

completed and transferred out + ending WIP

Equivalent Units of Production (EUP) (FIFO Method)

beginning WIP + Unit started and completed + ending WIP

units completed and transferred out/ stated and completed

ALWAYS 100% complete for both materials and conversion

conversion costs

Direct Labor + Manufacturing Overhead

cost per equivalent unit

(Beginning WIP + Cost added during period)/equivalent units of production

Predetermined Overhead Rate

estimated overhead costs / estimated activity base (direct labor)

overhead applied

POHR x actual activity

FIFO method

combines units and costs across two periods in computing equivalent units

FIFO method of process costing

beginning WIP, started and completed, end WIP

weighted average method

completed and transferred, ending WIP

units started and completed

completed and transferred out - beginning WIP

End Inventory

Beg. Inventory + Purchases - transferred out

units completed and transferred out equation

beginning inventory + started units - end inventory

cost per equivalent unit of production: weighted average method

beginning WIP costs + current costs incurred/ EUP

units to account for

beginning WIP + units started this period

Total units accounted for (weighted average method)

units completed and transferred + ending WIP

finished beginning inventory (FIFO method)

100%- % of indicated completed conversion

cost per equivalent unit of production: FIFO method

costs added / EUP

units accounted for (weighted average method)

completed and transferred out + ending WIP

units accounted for (FIFO method)

beginning WIP + Units started and completed + ending WIP

yield

nondefective units produced / units that could have beeen produced