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ACTG 321 Agenda for Lecture 11

ACTG 321 Agenda for Lecture 11. Equivalent units. Equivalent Units. Beginning of year. Activity during the year. End of year. 0. 10 units made. Units. 0. Equivalent Units. Beginning of year. Activity during the year. End of year. 0. 10 units made & sold. Units. 0.

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ACTG 321 Agenda for Lecture 11

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  1. ACTG 321Agenda for Lecture 11 • Equivalent units

  2. Equivalent Units Beginning of year Activity during the year End of year 0 10 units made Units 0

  3. Equivalent Units Beginning of year Activity during the year End of year 0 10 units made & sold Units 0 $1,900 in materials $940 in labor $$

  4. Equivalent Units Beginning of year Activity during the year End of year 0 10 units made & sold Units 0 $1,900 in materials $940 in labor $$ What is the cost of each unit made? $284

  5. Equivalent Units Beginning of year Activity during the year End of year Units 0 10 units started: 9 completed & sold; 1 not yet finished. 1 partially finished unit $1,900 in materials, $940 in labor $$ What is the cost of each unit made?

  6. Equivalent Units Beginning of year Activity during the year End of year 9 units started & finished. 1 unit, not yet finished, is 50% complete. 1 partially finished unit Units 0 $1,900 in materials $940 in labor $$ What is the cost of each unit made? $299

  7. Equivalent Units Beginning of year Activity during the year End of year 9 units started & finished. 1 unit, not yet finished, is 100% complete as regards materials, 40% complete as regards labor. 1 partially finished unit Units 0 $$ $1,900 in materials $940 in labor What is the cost of each unit made? $290

  8. Equivalent Units Beginning of year Activity during the year End of year 1 unit 10 units started & completed; 10 units sold. 1 finished unit Units $1,900 in materials $ 940 in labor $$ $700

  9. Equivalent Units Beginning of year Activity during the year End of year 1 unit 10 units started & completed; 10 units sold. 1 finished unit Units $$ $700 $1,900 in materials, $940 in labor What is the cost of goods sold?

  10. Equivalent Units Beginning inventory Activity during the year End of year 1 unit at $700 per unit 10 units produced at $284 per unit. 1 unit What is the cost of goods sold? FIFO: 1 unit at $700 + 9 units at $284 = $3,256 LIFO: 10 units at $284 = $2,840 Weighted Average: 11 units at a total cost of $3540 = $322 per unit. COGS = $3,218.

  11. Equivalent Units Beginning inventory Activity during the year End of year 1 unit at $700 per unit 10 units produced at $284 per unit. 1 unit Weighted Average: 11 units at a total cost of $3540 = $322 per unit. COGS = $3,218. The weighted average method averages between the cost of goods on hand at the beginning of the period, and the cost of goods produced during the period.

  12. Equivalent Units Beginning of year Activity during the year End of year The 1 unit coming into the period is completed. 10 units are started and completed. 1 unit is 20% complete. 1 unit that is 50% complete. Units 1 unit, 20% complete $150 in materials and labor $$ $2,840 in materials and labor What is the cost of each unit made?

  13. Equivalent Units Beginning of year Activity during the year End of year The1unit coming into the period is finished.10units are started and completed. 1 unit is 20% complete. 1 unit that is 50% complete. 1unit that is20%complete Units $150 in materials and labor $$ $2,840 in materials and labor cost per unit =total $$÷equivalent units

  14. Equivalent Units Beginning of year Activity during the year End of year The1unit coming into the period is finished.10units are started and completed. 1 unit is 20% complete. 1 unit that is 50% complete. 1unit that is20%complete Units $150 in materials and labor $$ $2,840 in materials and labor cost per unit =$2,990÷11.2 = $266.96

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