管理会计MAchap004.ppt

4-* We calculate the cost per equivalent unit by dividing costs added during the period by the equivalent units we previously calculated. 4-* Part I We begin by gathering information concerning the total costs incurred during June for materials and conversion. Do not include the costs associated with the units in beginning inventory. We calculate the cost per equivalent units as to materials by dividing $118,621 by 5,820 units. We calculate the cost per equivalent unit as to conversion by dividing $81,130 by 5,610 units. In an attempt to minimize the impact of rounding errors, we will carry the per unit cost out to four significant decimal places. Part II Finally, we determine the total cost per equivalent unit by adding together the cost per equivalent unit for materials, $20.3816, and the cost per equivalent unit for conversion, $14.4617, to get the total cost of $34.8433. 4-* Learning objective number 8 is to assign costs to units using the FIFO method. 4-* Let’s compute the cost of ending Work in Process Inventory. The first step is to record the equivalent units of production in ending Work in Process Inventory (540 units for materials and 270 units for conversion). 4-* The second step is to record the cost per equivalent unit ($20.3816 for materials and $14.4617 for conversion). 4-* The third step is to compute the cost of ending Work in Process Inventory ($11,006 for materials, $3,905 for conversion, and $14,911 in total). 4-* Now, we will compute the cost of units transferred out. The first component of the computation is to record the cost in beginning work in process inventory ($6,119 for materials, $3,920 for conversion, and $10,039 in total) 4-* The second component of the computation is to compute the cost to complete the units in beginning Work in Process Inventory. Start by recording the equivalent units of production required to complete the units in beginning inventory (180 units for materials and 240 units for conversion). Next, record the cost