[Anonymous]

On page 47 of BEC Ninja Notes, there is this chart that has a side-by-side comparison of EFU, Equivalent Finished Units. I am just wondering, what is this chart for? I have been starting at it for a good while and am still dazed.

[Maaneet]

I asked myself the same question when I first read the notes (before I started studying my actual study material).

It's to help you calculate material and conversion costs included work-in-process at the end of a given period. Here is what I understood so far, it would help you calculate the material cost if only a % of material was input (if not all of the material is added at the beginning of the process). If they started 1000 units which were 60% completed as to material; that wold mean you have 600 Equivalent finished units that would be included in calculating WIP. My example does not include units already finished/shipped. Try doing a couple of MCQs to get a better idea.

Hope this helps!

FAR - 81 (2/13), Expired. 🙁 Retake 79 (11/14)
AUD - 63 (10/13), 71 (2/14), 69 (7/14), 81 (10/14) Finally!!!
BEC - 77 (2/14)
REG - 78 (5/14)

[Maaneet]

I asked myself the same question when I first read the notes (before I started studying my actual study material).

It's to help you calculate material and conversion costs included work-in-process at the end of a given period. Here is what I understood so far, it would help you calculate the material cost if only a % of material was input (if not all of the material is added at the beginning of the process). If they started 1000 units which were 60% completed as to material; that wold mean you have 600 Equivalent finished units that would be included in calculating WIP. My example does not include units already finished/shipped. Try doing a couple of MCQs to get a better idea.

Hope this helps!

FAR - 81 (2/13), Expired. 🙁 Retake 79 (11/14)
AUD - 63 (10/13), 71 (2/14), 69 (7/14), 81 (10/14) Finally!!!
BEC - 77 (2/14)
REG - 78 (5/14)

[Author]

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