Scribd Logo
Upload

Welcome to Scribd!

  • Costcon

    Uploaded by

    ralph11240308
    3 views2 pages
    This document compares the average and FIFO costing methods using production and cost data. It shows the calculations to assign costs to inventory and units completed under each method. The average method assigns a single average cost per equivalent unit produced, while FIFO assigns the earliest incurred costs to units transferred out and the latest costs to ending inventory.

    Original Description:

    none

    Original Title

    costcon (1)

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document compares the average and FIFO costing methods using production and cost data. It shows the calculations to assign costs to inventory and units completed under each method. The average method assigns a single average cost per equivalent unit produced, while FIFO assigns the earliest incurred costs to units transferred out and the latest costs to ending inventory.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    3 views2 pages

    Costcon

    Uploaded by

    ralph11240308
    This document compares the average and FIFO costing methods using production and cost data. It shows the calculations to assign costs to inventory and units completed under each method. The average method assigns a single average cost per equivalent unit produced, while FIFO assigns the earliest incurred costs to units transferred out and the latest costs to ending inventory.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Average Method

    Production Data Actual DM CONV


    WIP Inv, Beg 10,000.00
    Units Started 401,400.00
    Units to account for 411,400.00

    WIP Inv, beg 10,000.00 10,000.00 10,000.00


    Started and Completed 396,000.00 396,000.00 396,000.00
    Completed 406,000.00
    WIP Inv, End 5,400.00 5,400.00 4,320.00 <-- 80%
    Units accounted for 411,400.00 411,400.00 410,320.00

    Cost Data TC DM CONV


    Cost WIP Inv, Beg 37,402.00 11,886.00 25,516.00
    Current Period Cost 1,150,140.00 642,240.00 507,900.00
    Total Cost to Acct. for 1,187,542.00 654,126.00 533,416.00
    Divide by EUP 411,400.00 410,320.00
    Cost per EUP 2.89 1.59 1.30

    Cost Assignment
    Completed (Trans. Out) 1,173,340.00 <-- 406k x 2.89
    WIP Inv, End:
    DM 8,586.00 <-- 5400 x 1.59
    CONV 5,616.00 14,202.00 <-- 4320 x 1.30
    Total Cost Acct. for 1,187,542.00

    FIFO Method
    Production Data Actual DM CONV
    WIP Inv, Beg 10,000.00
    Units Started 401,400.00
    Units to account for 411,400.00

    WIP Inv, beg 10,000.00 - 6,000.00 <- 100% - 40%


    Started and Completed 396,000.00 396,000.00 396,000.00
    Completed 406,000.00
    WIP Inv, End 5,400.00 5,400.00 4,320.00
    Units accounted for 411,400.00 401,400.00 406,320.00

    Cost Data TC DM CONV


    Cost WIP Inv, Beg 37,402.00 - -
    Current Period Cost 1,150,140.00 642,240.00 507,900.00
    Total Cost to Acct. for 1,187,542.00 642,240.00 507,900.00
    Divide by EUP 401,400.00 406,320.00
    Cost per EUP 2.85 1.60 1.25

    Cost Assignment
    Transferred Out:
    WIP Inv, Beg 37,402.00
    Cost to Complete 7,500.00 44,902.00
    S and C this period 1,128,600.00

    WIP Inv, End:


    DM 8,640.00
    CONV 5,400.00 14,040.00
    Total Cost Acct. for 1,187,542.00

    You might also like