[jeff]

When using the first-in, first-out method of process costing, total equivalent units of production for a given period of time is equal to the number of units

a. In work in process at the beginning of the period times the percent of work necessary to complete the items, plus the number of units started during the period, less the number of units remaining in work in process at the end of the period times the percent of work necessary to complete the items.

b. In work in process at the beginning of the period, plus the number of units started during the period, plus the number of units remaining in work in process at the end of the period times the percent of work necessary to complete the items.

c. Transferred out during the period, plus the number of units remaining in work in process at the end of the period times the percent of work necessary to complete the items.

d. Started into process during the period, plus the number of units in work in process at the beginning of the period.

Source: Wiley Test Bank

Link: https://www.another71.com/products-page/wiley-software/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[nimmle02]

ermmm…yea. I'm glad i already passed BEC

REG - 5/21/2012 - 85
FAR - 7/24/2012 - 86
BEC - 8/27/2012 - 85
AUD - 10/5/2012 - 72....rematch 1/3/13 (waiting)

[nimmle02]

ermmm…yea. I'm glad i already passed BEC

REG - 5/21/2012 - 85
FAR - 7/24/2012 - 86
BEC - 8/27/2012 - 85
AUD - 10/5/2012 - 72....rematch 1/3/13 (waiting)

[jeff]

a. This answer is correct. The FIFO method determines equivalent units of production (EUP) based on the work done in the current period, which includes the work necessary to complete beginning work in process (BWIP) and the work performed on the units started in the current period. The units started during the period are either completed or they remain as ending work in process (EWIP); thus, the EUP relative to units started consists of the number of units completed plus the work done on the EWIP. The EUP for FIFO can be calculated in various ways, two of which are presented below.

Work to complete BWIP

+Units started and completed

+Work to date on EWIP

=Equivalent units (FIFO)

or

Work to complete BWIP

+Units started

-Work to complete EWIP

=Equivalent units (FIFO)

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[jeff]

a. This answer is correct. The FIFO method determines equivalent units of production (EUP) based on the work done in the current period, which includes the work necessary to complete beginning work in process (BWIP) and the work performed on the units started in the current period. The units started during the period are either completed or they remain as ending work in process (EWIP); thus, the EUP relative to units started consists of the number of units completed plus the work done on the EWIP. The EUP for FIFO can be calculated in various ways, two of which are presented below.

Work to complete BWIP

+Units started and completed

+Work to date on EWIP

=Equivalent units (FIFO)

or

Work to complete BWIP

+Units started

-Work to complete EWIP

=Equivalent units (FIFO)

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

I thought I knew Process Costing pretty well in regards to weighted average and FIFO. From my understanding, I went by this computation in calculating FIFO Equivalent Units:

Units Completed

+Completed EWIP

-Completed BWIP

= Equivalent Units (FIFO)

This MCQ just confused the hell out of me. Can you help tie in the answer of this MCQ to what I understand from the calculation I mentioned above?

[Anonymous]

I thought I knew Process Costing pretty well in regards to weighted average and FIFO. From my understanding, I went by this computation in calculating FIFO Equivalent Units:

Units Completed

+Completed EWIP

-Completed BWIP

= Equivalent Units (FIFO)

This MCQ just confused the hell out of me. Can you help tie in the answer of this MCQ to what I understand from the calculation I mentioned above?

[Anonymous]

Jeff says A is the right answer… it seems like none of the answers provided are correct. Wiley TB also has the same question, no wonder everyone gets confused.

Please help me, my BEC test is Friday and I am over this $H!%…wouldn'nt this be the correct answer below:

In work in process at the beginning of the period, plus the number of units started during the period, plus the number of units remaining in work in process at the end of the period times the …percent of “work performed on these units during the period”.

[Anonymous]

Jeff says A is the right answer… it seems like none of the answers provided are correct. Wiley TB also has the same question, no wonder everyone gets confused.

Please help me, my BEC test is Friday and I am over this $H!%…wouldn'nt this be the correct answer below:

In work in process at the beginning of the period, plus the number of units started during the period, plus the number of units remaining in work in process at the end of the period times the …percent of “work performed on these units during the period”.

[futureCPA12]

I have a different way of doing this which works really well for me:

FIFO – (take the ending inventory X percentage complete) + completed – (beginning inventory X percentage complete)

Weighted-Average – (take the ending inventory X percentage complete) + completed

And when computing the dollar amount per unit, W/A always uses beginning and ending inventory $ amount, while FIFO only uses ending inventory $ amount.

[futureCPA12]

I have a different way of doing this which works really well for me:

FIFO – (take the ending inventory X percentage complete) + completed – (beginning inventory X percentage complete)

Weighted-Average – (take the ending inventory X percentage complete) + completed

And when computing the dollar amount per unit, W/A always uses beginning and ending inventory $ amount, while FIFO only uses ending inventory $ amount.

[UCMCPA]

All I have to say is….

MORTAL COMBATTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

All I have to say is….

MORTAL COMBATTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Author]

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