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Understanding Equivalent Units in FIFO Process Costing Evaluation Exercises

This exercise focuses on computing the equivalent units of production using FIFO process costing. Participants will analyze inventory levels in the Mixing and Cooking Departments for both materials and conversion, identifying the percent of completion for beginning and ending inventory. The exercise guides users to apply theoretical knowledge practically, reinforcing the understanding of equivalent units and their significance in process costing. This activity is crucial for students and professionals involved in cost accounting and manufacturing processes.

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Understanding Equivalent Units in FIFO Process Costing Evaluation Exercises

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  1. Process Costing Chapter 18 Exercises

  2. Process Costing • In-Class Exercise (Form groups and work exercise): • Exercise No.Page E18A-28 1128 Computing Equivalent Units of Production - FIFO

  3. Process Costing – Equivalent Units Exercise E18A-28 (Part 1) (Use the format, as reflected on the next slide, to begin this exercise)

  4. Process Costing – Equivalent Units Exercise E18A-28: For Requirement 1, given the data presented, determine the percent of completion for the following: (a) Mixing Dept. - Beginning inventory (materials & conversion) (b) Mixing Dept. - Ending inventory (materials & conversion) (c) Cooking Dept. - Beginning inventory (materials & conversion) (d) Cooking Dept. - Ending inventory (materials & conversion) DepartmentMaterialsConversion (a) Mixing (Beg. Inv.) 40% 25% (b) Mixing (End. Inv.) 70% 20% (c) Cooking (Beg. Inv.) 40% 20% (d) Cooking (End. Inv.) 65% 55%

  5. Process Costing – Equivalent Units Exercise E18A-28: For Requirement 1, given the data presented, determine the percent of completion for the following: (a) Mixing Dept. - Beginning inventory (materials & conversion) (b) Mixing Dept. - Ending inventory (materials & conversion) (c) Cooking Dept. - Beginning inventory (materials & conversion) (d) Cooking Dept. - Ending inventory (materials & conversion) DepartmentMaterialsConversion (a) Mixing (Beg. Inv.) 40% 25% (b) Mixing (End. Inv.) 70% 20% (c) Cooking (Beg. Inv.) 40% 20% (d) Cooking (End. Inv.) 65% 55%

  6. Process Costing – Equivalent Units Exercise E18A-28 (Part 2) (Use the format, as reflected on the next slide, to complete this part of the exercise)

  7. Process Costing – Equivalent Units Prepare this schedule, for materials, conversion, and transfers-in, for both the Mixing & Cooking Departments.

  8. Process Costing – Equivalent Units Mixing Department

  9. Process Costing – Equivalent Units Cutting Department

  10. Process Costing – Equivalent Units Cutting Department

  11. Process Costing – Equivalent Units End of Exercise

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