管理会计chapter4.ppt

4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * Cost per Equivalent Unit - FIFO The formula for computing the cost per equivalent unit under FIFO method is as follows: Cost perequivalent unit = Cost added during the period Equivalent units of production Cost per Equivalent Unit - FIFO Learning Objective 7 Assign costs to units using the FIFO method. Applying Costs - FIFO Step 1: Record the equivalent units of production in ending work in process inventory. Applying Costs - FIFO Step 2: Record the cost per equivalent unit. Applying Costs - FIFO Step 3: Compute the cost of ending work in process inventory. Cost of Units Transferred Out Step 1: Record the cost in beginning work in process inventory. Cost of Units Transferred Out Step 2: Compute the cost to complete the units in beginningwork in process inventory. Cost of Units Transferred Out Step 3: Compute the cost of units started and completed this period. Cost of Units Transferred Out Step 4: Compute the total cost of units transferred out. Principle of FIFO Reconciling Costs Part A Reconciling Costs Part B A Comparison of Costing Methods In a lean production environment, FIFO and weighted-average methods yield similar unit costs. When considering cost control, FIFO is superior to weighted-average because it does not mix costs of the current period with costs of the prior period. End of Chapter 4 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * 4-* * Treatment of Direct Labor Direct labor costsare becoming smallin comparison toother product costs in processcost systems. DirectMaterials Type of Product Cost Dollar Amount DirectLabor Conversion Treatment of D