BEC Cost Accounting Part 2

Question 1

Formula Weighted Average Equivalent Units

Answer 1

1,) Units Completed

2.) EWIP X % Complete

Question 2

FIFO Equivalent Units Formula

Answer 2

1. .Beginning WIP % remaining to complete
2. Units started & Completed (Started - Costs Added or Completed - BWIP)
3. EWIP % remaining to complete

Question 3

Weighted Average Equivalent Units Cost Formula

Answer 3

Costs Added or Started during the month + Beg WIP / # OF equivalent units

Question 4

FIFO Equivalent Units Cost Formula

Answer 4

Cost Added during the month / # of equivalent units

Question 5

Direct Materials Formula

Answer 5

Beginning Direct Materials
\+ DM Purchases
\+ Transportation-in
- Purchase Returns & Allowances
= Materials Available
- Cost of Materials
= Ending Direct Materials

Question 6

Total Manufacturing Costs Formula

Answer 6

DM + DL + MOH

Question 7

Cost of Goods Manufactured

Answer 7

Cost of Goods Manufactured = 
Total manufacturing Cost
Add:  BWIP
Less: EWIP
= Cost of goods manufactured

Question 8

Cost of Goods Sold Formula

Answer 8

Beginning Inventory
\+ Cost of goods manufactured
= Cost of Goods available
(-) Less Ending FG Inventory
= COGS

Question 9

Cost of goods transferred to finished goods formula

Answer 9

Cost of goods transferred to Finished Goods =
Total Manufacturing Cost adjusted for changes in WIP
Beginning WIP
+ Plus total manufacturing costs
- Less goods transferred to F.G
= EWIP

Question 10

Process Costing

Answer 10

A method of product costing that averages costs and applies them to a large number of homogenous items.

Question 11

Steps for Process Costing

Answer 11

Process Costing Steps:

1. Summarize the flow of physical units beginning with the production report.
2. Calculate “equivalent unit” output
3. Accumulate the total cost to be accounted for (production report) (DM + DL + MOH)
4. Calculate the average unit costs to the units completed and the units remaining in ending work-in process inventory
5. Apply the average costs to the units completed and the units remaining in ending work-in-process inventory.