《管理会计》第四章讲义.pptVIP

* Third, divide the $350,900 of conversion costs added in the month by the 4,840 equivalent units of production to obtain the cost per equivalent unit of $72.50 for conversion. Fourth, add the material and conversion costs per equivalent unit to obtain the $148.50 total cost per equivalent unit. * Learning objective number 2 is to prepare a cost reconciliation using the FIFO method. * The third step is to prepare a cost reconciliation. First, calculate the total costs from beginning inventory that are transferred to the next department by summing the costs in beginning inventory and the costs incurred to complete the unfinished equivalent units in beginning inventory. The costs in beginning work in process are $15,175. The costs to complete beginning work in process are computed as follows: For material, multiply 90 equivalent units by the materials cost of $76.00 per equivalent unit to obtain $6,840. For conversion, multiply 140 equivalent units by the conversion cost of $72.50 per equivalent unit to obtain $10,150. The total of all three costs is $32,165. * Second, calculate the $683,100 cost of units started and completed during the period by multiplying 4,600 units times the $148.50 total cost per equivalent unit. * Third, calculate the costs remaining in ending work in process. For material, multiply the 160 equivalent units in ending work in process by the materials cost of $76.00 per equivalent unit to obtain the $12,160 materials cost in ending work in process. For conversion, multiply the 100 equivalent units in ending work in process by the conversion cost of $72.50 per equivalent unit to obtain the $7,250 conversion cost in ending work in process. Finally, sum all costs included in the reconciliation to account for the total costs of $734,675. * End of Chapter 4. * The first step is to prepare the quantity schedule and compute the equivalent units. Calculate the units to be accounted for by adding units in beginning inv