9/11 Chapter 6

Question 1

LIFO

Answer 1

is not allowed in IFRS

Question 2

weighted average cost

Answer 2

blends together all of the inventories from current and prior periods

Question 3

cost production report

Answer 3

1. analysis of the flow of physical units
2. calculation of equivalent units
3. Computation of unit costs
4. Valuation of inventories
5. Cost reconciliation

Question 4

calculation of equivalent units

Answer 4

use the percentage complete to calculate

Question 5

computation of unit costs

Answer 5

multiplying the units by the costs of the unit to get the amount
cost per equivalent unit = (cost of B WIP + Cost added during the period)/Equivalent units of production
you add both the materials cost and the conversion cost
ending WIP = Equivalent units of production * cost per equivalent unit