[Jsmi77y]

Halp! So every time an equivalent productions question comes up I think I know the answer but it’s WRONG every time. I’ve re-read the sections over and over again.

For instance, here’s one question:

In the computation of manufacturing cost per equivalent unit, the weighted-average method of process costing considers –

A Current costs less cost of beginning work in process inventory.

B Current costs plus cost of ending work in process inventory.

C Current costs plus cost of beginning work in process inventory.

D Current costs only.

It’s a basic question, and I was under the impression both Weighted Average and FIFO take out beg inv. But that’s not the case. In fact I think I’m reading conflicting info in Wiley book vs Roger book. I feel like I have a huge gap in info here somewhere.

Is it FIFO = Completed units – units in BI + Equiv units in Ending

And WA = Current costs + Ending?

I know that if beginning inventory = 0 that WA method is = or greater, and it would make sense if I’m correct above.

REG - 68 | 71 | 88 | 86
FAR - 72 | 74 | 79
AUD - 66 | 70 | 77
BEC - 62 | 74 | 80

Guess that means I'm a soon-to-be CPA!

[Anonymous]

I did much better after studying just the chart Roger has (in my book page 7-9). Look at the column headed equivalent whole units. That helped me a lot. All the reading just confused me.

For equivalent whole units, there is the completed units at 100 % and then ending units X % completed. It does not matter what the % was at the beginning. For the cost, use the total costs.

For FIFO, break out the completed into % form beginning inventory and # started and completed this period. so there was 50 completed 20 from beginning inventory. so it would break down – 20 times % completed in beginning inventory + 30 units that were started and completed + # units in ending inventory x % complete. for costs use only costs in this period.

Key – adjust FIFO for the % completed in beginning inventory

[Jsmi77y]

Thank you, studying that section in my Roger book right now, I'll just master the chart as you stated!

REG - 68 | 71 | 88 | 86
FAR - 72 | 74 | 79
AUD - 66 | 70 | 77
BEC - 62 | 74 | 80

Guess that means I'm a soon-to-be CPA!

[Anonymous]

Your welcome. I struggled with the questions, and then really looked at the chart, followed it through a few examples, and did not miss a question after that.

Good luck on your test! I take mine on the 11th!

[Author]

Replies