BAR 3

Question 1

Calculate equivalent unit, using various methods

Answer 1

a) conversion cost using weighted-average method
1) equivalent units = units completed + (ending WIP * % completed of ending WIP)
2) weighted-average cost per equivalent units= (beg cost DL labor + beg cost factory OH + current cost DL + current cost factory OH) / equivalent units
b) material cost using FIFO method
1) equivalent units = (beginning WIP * % completed of ending inventory) + (completed units production - beginning WIP inv) + (Ending WIP Inv * ending inv % complete for materials)