Ch 17

Thursday, October 11, 2012 10:33 PM

1. Process Costing - 3 Cases a. No ending WIP i. DM cost per unit = total DM cost/total units ii. CC per unit = total CC /total units b. No BWIP, EWIP i. Determine 1. The cost of fully assembled units 2. The cost of partially assembled units still in process at the end of the period ii. 5 Step Process 1. Calculate physical units 2. EUs i. 2x2 matrix ii. Bottom 2 based on % iii. Material & conversion costs iv. Weighted average method v. Only EWIP is usable 3. Allocated Cost i. DM ii. CC iii. Current Cost (same period) iv. BWIP 4. Calculate Allocation Rates i. DM ii. CC 5. Multiply i. 2x2 matrix ii. No FIFO on exam c. BWIP & EWIP i. 5 steps ii. Weighted average method d. Focus is finding equivalent unit (EU) e. Why do we need EUs ? f. Allocate separately for conversion and direct materials